Commercial
General Liability Insurance
Protect your business from financial strain due to unexpected liability claims. Commercial general liability (CGL) insurance safeguards against economic losses arising from various third-party claims.
The Shepherd Group can help you secure the protection you need. We’re a trusted Canadian provider of comprehensive CGL insurance. Our expertise in your market and commitment to helping you navigate insurance complexities give you confidence when setting up insurance.
Why Canadian Businesses Need General Liability Insurance
Regardless of your industry or size, you will face various risks throughout your operations that could lead to costly lawsuits. Accidents happen, and CGL insurance may help you cover the legal costs if they do. Here are a few advantages of investing in this protection:
Financial & Legal Support
This insurance helps cover costs from third-party claims of injury or property damage related to your operations, products, or premises. Depending on the policy, it can also cover legal fees, court costs, and settlements.
Meet Contractual Requirements
Having CGL insurance is often a requirement to secure contracts with clients, allowing you to build and maintain essential business relationships.
Greater Peace of Mind
By providing a safety net against potential lawsuits, this insurance eases the anxiety of daily operations and lets you work with confidence.
What Does General Liability Insurance Cover?
General liability insurance coverage includes a wide variety of risks, particularly those involving third-party claims. Coverage may include legal expenses, medical expenses, settlement and judgment costs. At The Shepherd Group, we can identify a solution that sufficiently covers various exposures you may face.
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Bodily Injury Liability
Bodily injury insurance can cover injuries to third parties on your property or arising from your business activities. Coverage may include physical harm, illness or disease sustained by nonemployees. Some types of coverage include slip and fall or customer injury. This type of CGL insurance is a crucial backup to the safety measures you put in place, offering proactive risk management.
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Property Damage Liability
If your business operations inadvertently result in damage to a third party’s property, this solution can provide the coverage you need. It may cover the cost of repairing or replacing the damaged property. These costs can quickly escalate, so it’s vital to have protection.
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Advertising Injury Liability
When promoting your business, you may expose yourself to various risks, such as claims of libel, slander or copyright infringement in your advertisements. Advertising injury liability coverage can protect your business if you’re accused of:
- Publishing misleading advertisements.
- Defaming a competitor.
- Using copyrighted material without permission in marketing.
If you face advertising-related lawsuits, this coverage may help cover the costs. In an age of social media and digital marketing, you face more exposure than ever. While you can lower your risks by reviewing advertisements, liability provides an extra layer of defense.
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Tenant's Legal Liability
If you rent or lease a workspace, you can benefit from this coverage. With tenant’s legal liability insurance, you may be able to obtain coverage for accidental damage to the building you occupy. The insurance covers the owner’s losses from incidents such as fire or water damage. Owners typically don’t cover damage caused by a tenant, so proper coverage is essential.
Who Should Consider Commercial General Liability Insurance in Canada?
Almost all Canadian businesses can benefit from some form of business liability insurance. It’s beneficial for companies that interact with the public, work on client sites or engage in advertising. Here are a few specific examples of business types that we work with to identify suitable coverage:
Small businesses
If you run a small business, even a minor lawsuit can have significant financial consequences. General liability insurance provides the critical safety you need.
Retail stores
Your business is open to the public, which could expose customers to the risk of injury during their shopping trip.
Offices
Although offices typically see less foot traffic from the general public, you still need protection for any incidents involving visitors to your business or accidental property damage.
Contractors
You likely visit the properties of various clients. CGL insurance can provide coverage for accidental damage that may occur during your work.
Restaurants
Insurance safeguards against the risk of foodborne illnesses and customer injuries.
General Liability Insurance FAQs
Insurance can be a complex topic for many businesses, which is why we’re here to help you understand your potential exposures and the insurance protection you need. Here are clear answers to a few common questions we receive.
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How Much Does General Liability Insurance Cost in Canada?
The cost for general liability insurance can vary widely, from hundreds to thousands, depending on the business. There’s no one-size-fits-all price, so it’s best to get a quote tailored to your situation and the types of liability coverage you need. A few common factors that affect CGL insurance premiums are:
- Risks present: A sector, such as construction, that involves working on client premises poses more risk than businesses with less public interaction.
- Business size: The scale of your operations can influence potential exposures. Small business liability insurance in Canada typically has lower premiums.
- Location: Local conditions, population density and regional legal environments can all influence premiums.
- Claims history: Your history of past claims indicates the level of risk that future insurers will face.
- Coverage limits: If you choose a policy with higher coverage limits, you will pay a higher premium.
- Deductible: A higher deductible means you pay more out of pocket before insurance begins to pay, leading to lower premiums.
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What Is the Difference Between CGL and Professional Liability?
Commercial general liability insurance covers bodily injury, property damage and advertising injury arising from accidents in your operations. It focuses more on the physical risks present to third parties.
Professional liability insurance is also known as errors and omissions insurance. It covers financial losses resulting from professional negligence, mistakes or a failure to perform duties as promised. In other words, it covers more abstract risks.
Many businesses benefit from both CGL and professional liability insurance in Canada, as combining them provides comprehensive coverage.
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Do You Need CGL If You Already Have Property Insurance?
You still need CGL insurance, even if you already have property insurance, because the two cover different things. Property insurance protects your business assets, like the building and its contents. CGL protects you from liabilities arising from harm to others or their property.
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Is General Liability Insurance Mandatory in Ontario?
Ontario laws don’t require you to hold this insurance, but you may need it for other reasons. For example, landlords often require tenants to hold tenant’s legal liability insurance. Clients may also require you to have CGL insurance before they use your services. In general, holding this insurance is a fundamental best practice that enables you to manage risk.
Why Choose The Shepherd Group?
We’re here to help you find the right insurance for your needs, acting as your go-to provider for comprehensive business solutions. Benefits of choosing us include:
- Expertise: We understand the Canadian insurance landscape and how it changes across provinces. Our team can identify liability insurance for contractors in Canada and other businesses, such as hotels.
- Support: You gain personalized service from dedicated brokers. We’re responsive to your needs and offer support you can rely on.
- Price: We have access to multiple insurers, which enables us to find competitive rates and cost-effective solutions. Meanwhile, we’ll ensure you have adequate coverage for the potential risks you face.
- Commitment: We’re your trusted partner in risk management. Our team is dedicated to your success and works hard to ensure your insurance supports that success.
Get a Quote From Us
Protect your business with the proper liability coverage. We’ll help you find tailored CGL insurance to meet the specific needs of your business. We can also help you get other essential insurance coverage for comprehensive protection.
Fill out our contact form online to get a quote. You can also call us at 1-866-565-6955. Take the first step to secure peace of mind for your business.
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