What Is Commercial General Liability (CGL)?
Commercial General Liability (CGL) insurance is the foundational liability policy for Ontario businesses. It covers third-party bodily injury, property damage, and personal injury (such as libel or slander) arising from your operations, premises, or products, plus legal defence.
CGL is what most clients, landlords, and municipalities require before you can work or rent, often asking to be named as an additional insured on a certificate of insurance. It does not cover professional advice (that is E&O) or damage to your own property.
Frequently asked questions
What does commercial general liability insurance cover?
Commercial general liability (CGL) covers claims that your business caused bodily injury or property damage to someone else, plus personal and advertising injury such as libel or slander. It also pays the legal costs of defending a covered claim.
Is CGL insurance mandatory in Ontario?
CGL is not required by Ontario law for most businesses, but it is often required in practice. Landlords, general contractors, municipalities, and many clients ask for proof of CGL, usually on a certificate of insurance, before you sign a lease or start work.
What is the difference between CGL and professional liability?
CGL responds to bodily injury and physical property damage, while professional liability (errors and omissions) responds to financial loss caused by your advice or professional services. Many service businesses carry both because they cover different kinds of claims.
Questions about Commercial General Liability?
Our Ontario brokers can explain how it applies to your policy.
Talk to a Roughley broker