What is Commercial General Liability Insurance (CGL)?

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Commercial general liability (CGL) insurance is insurance that could save your business thousands of dollars on claims of bodily injuries and property damage.

These days, it seems like the only thing we can be sure of is uncertainty. The global pandemic certainly buttresses this point. Thousands of small businesses around the world have been adversely affected.

When running a business, you bear the risk of liability that something could happen out of your control each day. Insurance can help protect against the unexpected and ensure a stress-free run for your business.

There are many kinds of insurance coverages, such as commercial property, commercial general liability, product liability, automobile liability, credit card insurance etc.

This article will focus on what commercial general liability insurance is, what it covers, and the three best providers of commercial general liability insurance in Canada.

Commercial General Liability Insurance Meaning

Commercial general liability (CGL) insurance covers your business from claims of bodily injuries and property damage as they relate to your business operations.

It was introduced in 1986 and still provides Canadian companies with coverage against any surmountable financial loss that might result from events that occur on their property. It also protects the business from any financial loss that might occur from the services that they render to their consumers.

For example, if someone tripped and fell in your store because the floor was wet, whether it was a customer or employee, it would be covered under CGL insurance.

There are two types of CGL policies – one that covers claims regardless of when the event took place and one that is an occurrence policy where the event must take place during a set period.

It’s always best to be prepared in unpredictable situations, which is what CGL offers any business – protection, and mitigation of financial loss.

What does CGL insurance cover?

CGL insurance covers any liability in the form of bodily injury or property damage, but it is important to note that these liabilities have to be non-professional. These are the two main categories covered by CGL insurance for Canadian businesses.

In the case of bodily injury claims, if your business is found liable for the injury of either an employee or customer as a direct result of your work, it can be covered under CGL insurance. When the individual is gravely hurt and looking at a potential loss of income, major surgery, or disabilities, the payout could be huge.

In the case of property damage claims, it is not only the business premises that are covered, but it is also designed to cover third-party premises. For example, if you cater an event but then they claim you damaged their property during the event, CGL insurance can help protect you.

Top 3 recommendations for CGL insurance providers

1. Zensurance

Zensurance is one of the biggest distributors in the insurance market, and for a good reason. Their services are entirely online, which means that you can access an agent at any given point in time.

They use an automated system to identify the best insurance providers for your business needs which helps you pick the ideal option after comparing their recommendations. You can save up to 35% off and this includes coverages such as tenant’s legal liability and personal and advertising injury liability.

2. Fenn & Fenn Insurance Inc

Fenn & Fenn Insurance Inc., was established in 2003 to serve businesses irrespective of their size. Since then, they’ve grown to incorporate experts in the US & UK insurance fields too.

They are considered one of the most valuable providers in the CGL insurance domain. One of the main reasons they are so successful is because they create custom insurance policies for each of their customers.

3. Victor Canada

Victor Canada, which was previously known as Encon Group Inc., has over 40 years of experience in the field of insurance. They are one of the most popular providers in Canada and specialize in the liability insurance sector.

They provide a special Commercial Umbrella service that covers not only CGL claims but a few additional claims with broad definitions for advertising, bodily, and personal injury. It also further protects the business from ‘worst-case judgment’s’.

Overall, it is crucial to get a CGL insurance policy for your Canadian business so that you are covered in case of bodily injury or property damage claims against your company.

CGL insurance policies can even cover claims that occur on third-party premises meaning you are protected even if you have to bring your business on the road. With multiple CGL insurance providers in Canada, make sure to research which option is best for you thoroughly.

Accidents happen, so it’s essential to be covered when they do. Signing up for CGL insurance will protect you and your business from any problems you might face in the future.

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Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.

Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.