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Commercial General Liability Insurance

Contractors Insurance is a reputable commercial insurance brokerage in Ontario. We are here to help independent contractors, professionals, and contractor businesses to get the tailor-fit insurance plan that they need. This includes commercial general liability insurance.

Commercial general liability insurance is considered by many as a staple insurance policy that all businesses need because of the broad coverage it provides regarding third-party lawsuits. Third-party injuries, property damage, and reputational/advertising injuries are all covered in this must-have insurance plan.

Throughout our years of experience, we have provided numerous contractor businesses with insurance policies that best fit their specific needs. We have also garnered multiple awards and vast industry recognition for what we do. With Contractors Insurance, you can be sure that your business is in good hands!

What Is Commercial General Liability Insurance?

Commercial general liability (CGL) insurance protects your business from a wide array of third-party lawsuits resulting from various unforeseen events. The best part is its protection extends to your office as well as your project sites. Due to the broad scope of this insurance type, it is a must-have for nearly all kinds of businesses across different industries.

The following incidents are covered by commercial general liability insurance in Ontario:

Third-Party Bodily Injury

Construction and related trades involves the use of high-powered tools, working from heights, and working in close proximity to clients or the general public. Depending on your daily job tasks, there may be additional risks. Ultimately, accidents can happen and physically injure a third-party. In such cases, CGL insurance has your business covered in the case of legal and medical fees. In the instance your completed work causes injury at a later date, this will also be covered under CGL.

Third-Party Property Damage

The same risk factors that could potentially injure third-party individuals can also cause property damage. This can be anything from an accidental hammer swing to faulty electrical components that start a fire. In such cases, CGL will cover for the repair/replacement costs as well as the legal costs involved. This protection extends even after project completion, in cases when the finished work causes property damage.

Advertising/Reputational Injury

Advertising/reputational injuries are cited as some of the most common causes of third-party lawsuits against a business. CGL protects your business when you are faced with third-party lawsuits relating to slander, libel, copyright infringement, intellectual property issues, violations of privacy, and more.

Who Can Benefit From CGL Coverage?

Commercial general liability is a type of insurance you will need if one or more of these apply to your business:

  • You have a physical office that is frequented by clients and other third-party individuals regularly
  • You have project sites that have hazardous elements such as:
    • Working from heights, working with high-powered equipment
    • Working with heavy/fragile materials, doing excavation work
    • Proximity to passersby, homeowners, or other third-party individuals
    • Proximity to third-party or public property
  • Your projects can, after completion, cause injury or property damage if an error or accidental use of faulty material was done
  • You regularly do marketing/advertising on any medium

The above qualifiers, which are connected to risks that can lead to costly third-party lawsuits, can apply to various contractors, tradespeople, and professionals. In addition to the above points, CGL insurance is also legally required for Ontario contractors in order to protect the customer.

We’ve helped numerous clients with their personalized CGL insurance policies. Whether you are still unsure and have questions about getting this insurance type or if you’re ready to get started, we’re here to assist you!

Why Is It Important for Ontario Contractors to Have CGL Insurance?

The settlement and legal fees due to third-party lawsuits can cost your business from tens of thousands to even millions of dollars. When served with a lawsuit, your business would have no choice but to legally defend itself, so even if you are eventually found to be not legally responsible for an incident, the legal fees alone add up.

CGL Claims Examples

Construction and related trades involves the use of high-powered tools, working from heights, and working in close proximity to clients or the general public. Depending on your daily job tasks, there may be additional risks. Ultimately, accidents can happen and physically injure a third-party. In such cases, CGL insurance has your business covered in the case of legal and medical fees. In the instance your completed work causes injury at a later date, this will also be covered under CGL.

Claims Example #1
  • Problem Icon

    The mistake of not fencing in an excavation site immediately leads to an accidental fall which causes the client to sustain a leg fracture.

  • Outcome Icon

    The client successfully sues for bodily injury. Your CGL will cover the settlement amount of $20,000 for the medical costs, $8,500 for lost income during the client’s eight-week recovery period, as well as $10,000 for legal costs – totalling $38,500.

Claims Example #2
  • Problem Icon

    A faulty electrical component that you installed sets the home’s kitchen on fire and the client sues.

  • Outcome Icon

    The client successfully sues for property damage. Your CGL will cover the repair costs amounting to $50,000 as well as the legal fee of $15,000 – totalling $65,000.

Claims Example #3
  • Problem Icon

    Another business sues your business for copyright infringement.

  • Outcome Icon

    The client successfully sues for advertising injury. Your CGL will cover the settlement amounting to $20,000 as well as the legal fee of $10,000 – totalling $30,000.

Leading Provider of Commercial Liability Insurance in Ontario

One of the main reasons behind our strong client relationships is our customer-centric approach. To provide the best experience, we make a conscious effort to offer the following benefits:

Personalized Insurance Plans

With our personalized insurance plans, we can give your business the coverage it needs – with NO costly unnecessary riders. You can secure commercial general liability insurance in Ontario along with any additional coverage your business might need.

Utmost Transparency on Coverage and Limitations

Once we have an insurance plan ready for you, we will explain it to you thoroughly with full transparency. We will advise you on how it works, the triggers for a claim, your coverage limit(s), and its exclusions. Then, we can tweak the insurance plan until we’ve got the perfect one for your business.

Thorough and Straightforward Insurance Education

We avoid complicated jargon as much as we can because we want to make sure that our clients understand what they are paying for. This is the best way for us to involve you in the personalization of your insurance plan and omit any unnecessary or unwanted riders.

Frequently Asked Questions

Numerous factors affect the cost of CGL insurance such as the risks associated with your industry, the size of your business, how long your business has been around, and so on. However, the average cost for CGL insurance is around $55 to $70 per month for a coverage limit of around $1 to $2 million.

Commercial general liability and general liability insurance pertain to the same insurance type and these terms can be used interchangeably.

Most contractors are unaware that CGL insurance is legally required from Ontario contractors in order to protect the customer. However, the bonus to this is that it protects the business equally in the face of unforeseen events.

Yes. If completed projects cause third-party bodily injury or property damage, the resulting legal and medical fees are covered by the CGL insurance.

Ready to Get the Coverage You Need?

Contractors Insurance is a trusted and award-winning insurance brokerage firm based in Ontario. We specialize in putting together customized insurance plans that fit the unique coverage needs of various types of contractor businesses.

Equipping your company with tailor-fit commercial general liability insurance will give you added peace of mind in knowing that your business has a secure and successful future.

Contact us today or get started with a quick quote!

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