What Does General Liability Insurance Cover for Ontario Businesses?
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Commercial general liability insurance in Ontario is designed to cover businesses from incidents resulting in property damage or bodily injury to a third-party. These risks have the potential to affect multiple stakeholders, including:
CGL falls under the definition of comprehensive insurance, but it does have its limitations and may not cover every risk that your business could face. There are numerous types of business liability insurance designed to enhance your business’ existing protection, all of which you can discuss with the assistance of a broker.
As for liability insurance in Ontario, CGL offers coverage in the event of damages or injuries caused by your operations or products, or if the incident takes place on your property. CGL policies come in two different forms: occurrence policies and claims-made policies. Claims-made policies offer coverage no matter when the event took place and occurrence policies only cover events that take place during a set period.
Commercial general liability can cover legal costs as well as the cost of accidental damages that may be involved with defending one’s business in a court of law. Below are several examples of liability insurance in Ontario:
- An employee is visiting a client’s home to do repairs. They accidentally drop a hammer, cracking the client’s floor. The client sues for the damages.
- You create a new advertisement for a product you are selling, but a competitor claims that it contains libel or slander, harming their reputation.
- Your retail store is a popular visit for window shoppers. After mopping the floor, an employee forgets to put up a wet floor sign and a passerby slips, falls and breaks their elbow.
As with any policy, there’s some special considerations with a liability insurance policy. If your business has certain requirements, it might work to name other people, or even a company as additional insured under your commercial general liability insurance policy. This is more common than you might think, especially when a business enters a contract with another entity.