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Commercial General Liability Insurance

Liability insurance, or commercial general liability insurance, is a type of insurance policy that is designed to provide coverage to a business in the event of personal injury, bodily injury, and even property damage that results from a business’ operations, its products, or even injuries that have occurred while someone is attending the business premises.

Sharp Insurance is dedicated to improving our customer’s insurance journeys. We believe in the hard work and capabilities of business owners, just as much as we believe in finding them the right protection to safeguard their livelihood in the event of the unforeseen. We value connection, innovation, empowerment, and being exceptional above all else – just like our hardworking clients.

Ready to begin protecting your business and your peace-of-mind? Get a free commercial liability insurance quote with Sharp Insurance today.

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Why You Need It

As a business owner, you know the specific risks to your industry. Legal claims against your business have the ability to damage your operations, reputation, or both. One of the most important types of coverages you can invest in is commercial general liability (CGL). At Sharp Insurance, we have the knowledge and expertise to recommend a policy that’s right for you.

A lot of contract work will require you to have CGL insurance. CGL insurance does not cover your employees for negligence or faulty advice or services. for that you will need Professional Liability Insurance. Click here for more information about Professional Liability Insurance.

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Basically, you should get CGL insurance if you or your employees do the following:

  • Represent your clients’ business
  • Interact with clients
  • Use third-party locations for business related activities
  • Use or have access to equipment

Get a Quote below for CGL insurance or contact us for more information. Our brokers are pretty great at finding you The Right Coverage for Your Business Needs.

Sharp Breaks Down Liability Insurance

Sharp Insurance’s industry experts are here to discuss your business’s unique risks. Speak with one of our award-winning insurance brokers today to discuss risk prevention and coverage options.

Commercial general liability is coverage for your business from an incident causing bodily injury or property damage to a third party. These risks can affect multiple stakeholders, including:

  • customers
  • vendors
  • employees
  • visitors

While commercial general liability is considered comprehensive insurance, it does have its limits and will not cover every risk that a business may face. There are numerous types of business liability insurance available to enhance your business’ existing protection, all of which you can discuss with the help of a broker. As for liability insurance, a comprehensive CGL policy offers coverage in case of damages or injuries caused by a business’ products or operations, or that takes place on its property. Commercial general liability insurance policies come in two types: a claims-made policy, which offers coverage no matter when events took place, and an “occurrence” policy, where events will have to take place during a set period to be covered.

Commercial general liability insurance policies can cover both the cost of accidental damages as well as any legal costs that are involved of defending one’s business in a suit. Here are a few examples of business liability insurance.

  • You own a restaurant, and an employee recently polished the floors. A customer attending your restaurant slips and hurts themselves.
  • You put up an advertisement to show off one of your new products for sale, but it results in someone claiming libel or slander.
  • While attending a client’s home to do repairs, one of your employees drops a hammer and cracks the hardwood floor.

Having a commercial general liability insurance policy in the instances above would likely help you to cover the cost of hiring someone to defend your business in a lawsuit. Sharp Insurance will typically recommend that even small businesses carry $1 million or $2 million in business liability insurance to ensure they’re protected against even the worst of lawsuits.

Note that there are special considerations with liability insurance. If a business has certain needs, it may be required to name other people or companies as “additional insured” under their commercial general liability insurance policy. This is common if a business enters into a contract with another entity.

Any business that interacts with clients needs CGL. Get a free commercial liability insurance quote with Sharp Insurance today.


Commercial General Liability Insurance Costs

The cost of liability insurance can vary immensely from business to business. Commercial general liability insurance can cost as little as $300/year for small businesses and upwards of $1,500 for mid-large sized businesses, or businesses with much higher limits or higher risk. As far as business policies go, commercial general liability insurance is considered the most crucial of coverages, so its cost should be considered the same way any ordinary business expense should.

Here are a few of the variables insurance carriers will use to determine your rates:

  • Business Location – How close you are to risk factors, like a high volume of pedestrians who may attend your store to check out the products, or in a high-crime area, can be a factor
  • Business size – How large is your physical business? Could a risk go unnoticed due to the layout of your property? Warehouses are rife with potential risks, whereas small retail shops may be seen as less risky due to their physical structure.
  • Business history – How old is your business? How much experience do you have, doing what you do? Newer businesses may see higher rates than businesses with more experience, as businesses that are newer to what they do are more likely to make mistakes.
  • Insurance history – How many claims have you made in the past? Statistically, the more claims you’ve made in recent history, the more likely you are to make claims again in the future.
  • Industry – Some industries are higher risk than others. Retail businesses tend to see a lot of visitors who could injure themselves, whereas e-commerce websites don’t have physical guests attending their place of business and may only need to be concerned about personal injury and/or product liability.
  • The number of workers that you have. Sometimes the biggest risk you’ll face is human error.
  • The current condition of your business equipment, property, and tools. If they are old and beginning to wear, the odds of someone being injured are much higher.
  • Your coverage limits: Obviously, the more coverage you buy, the more your rates will increase. Still, increasing your limits by a million or so will actually not increase your rates all that significantly, so it’s highly recommended you choose the limit right for you.

For a more accurate assessment of how much you’ll pay for your CGL, get a commercial general liability insurance quote with Sharp Insurance today. Premiums only apply to purchased policies – our quotes are free!

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Liability Insurance FAQs

It’s better to know and be confident than to not know and be unsure. Liability insurance comes in many different forms, but even your basic commercial general liability insurance can be confusing. Sharp is here to straighten out the edges and answer some FAQ’s.

What isn’t covered by my CGL insurance policy?

Commercial general liability insurance is designed to cover a business for accidental injuries and damages occurring to third-party, as well as legal expenses during a suit. This can also include claims of slander, libel, and even advertising injury. However, a CGL policy won’t cover property damage to a business’ own structure (you’ll need commercial property insurance for that) nor will it cover intentional/expected damages by the insured. It will also not cover businesses for damages or injury as a result of intoxication, automobiles, pollution, damage to business work, etc. This is where having additional insurance is highly recommended.

TLDR, what isn’t covered by your CGL policy includes:

  • Intentional damages
  • Property damage
  • Contractual liability
  • Cyber attacks
  • Professional services
  • Motor vehicles
  • Patent infringement
  • Intentional criminal actions
  • Loss of revenue if you’re shut down
  • Acts of war
  • Civil unrest


What are some examples of a commercial general liability insurance claim?

Reckon a guest were attending your retail store and was checking out the products you had on display. They walk down an aisle that was recently mopped by an employee, but no “wet floor” sign was placed. They slip, fall, and break their arm. They sue your business for their injuries and negligence in failing to provide a warning for the wet floor. In this instance, your commercial general liability insurance policy would likely cover you for any resulting costs.

Is commercial general liability insurance mandatory?

No, it isn’t. Commercial general liability insurance is only a recommendation, although we consider it a crucial purchase! Other business liability insurance policies, such as errors and omissions insurance, may be mandatory depending on the industry you operate in. Moreover, some clients or business partners could refuse to work with you without proof of insurance first!

How do I get lower rates for my CGL insurance?

There’s a few ways. First and foremost, enlist a broker! They’ll know how to find the best insurance policies and coverage for your circumstances, while giving you an insider look on what goes into your rates and how to make small changes for better prices.

Here’s a few tips:

  • Practice proper risk management. The less claims you make, the less your rates will increase. Risk management can look like proper employee training, identifying and mitigating risks, avoiding situations where a risk is likely to occur, etc.
  • Shop around for insurance quotes with the help of a broker. Buying insurance shouldn’t be a one-and-done situation.
  • Ask your broker about eligible discounts. Discounts may be available to return customers, loyal customers, business owners that are a part of a certain group, if you have multiple commercial policies through the same provider, and more.


What types of businesses need liability insurance?

Every business. If you’re selling a product, or a service, or – well, anything, really, you’ll need business insurance. That goes for contractors, professional services, retail businesses, wholesale/distributors, real estate companies, fitness centres, and so much more.

What are an advertising and personal injury?

Personal and/or advertising injury basically damages arising from infringement of privacy, alleged slander or libel on your advertisement, invasion of privacy, etc.

When does a commercial general liability insurance policy kick in?

A CGL insurance policy may kick in when a person that is involved under your business liability insurance policy becomes involved in an insurable incident during the course of your business’ operations. Covered incidents can occur at your work site, on your premise, or even at a client’s home as a result of work you or an employee is completing.

Why do I need commercial general liability insurance?

To cover your bottom line. If you interact with clients, use equipment, or represent a client’s business, it’s imperative to purchase CGL insurance. Lawsuits nowadays are expensive and can range into the tens of thousands, if not millions of dollars, so it’s better to be safe than sorry and avoid any chance of getting involved in a potential lawsuit.

What other business liability insurance policies do I need?

Business liability insurance encompasses a wide number of different commercial liability options. You could look into the following with a broker:

  • Product liability insurance
  • Pollution liability insurance
  • Crime insurance
  • Cyber liability insurance
  • Liquor liability insurance
  • Errors and omissions insurance
  • Commercial auto liability insurance
  • Contractor liability insurance

This is just a small sampling of some of the liability coverages available out there. Depending on what your business does and its needs, consult with a broker to discuss the benefits of these!

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Did You Know

Sharp Insurance’s industry experts are here to discuss your business’s unique risks. Speak with one of our award-winning insurance brokers today to discuss risk prevention and coverage options.

Commercial general liability is coverage for your business from an incident causing bodily injury or property damage to a third party. These risks can affect multiple stakeholders, including:

  • customers
  • vendors
  • employees
  • visitors

Right coverage

for your business needs

Get a Quote