Commercial General Liability Insurance in Ontario, Manitoba & Saskatchewan

For businesses, Commercial General Liability is a vital component of risk management. Accidents happen, property gets damaged, and in the worst-case scenario, people are hurt. With the general operations of any business, there is activity that could give rise to injury. Managing this potential for loss is best taken care of with a Commercial General Liability policy.

Even the best-run businesses cannot control all the variables that may lead to a loss or alleged loss. Weather hazards, employee discretion, and even false accusations can arise, which is why it is important to make sure your operations, premise, and the activities of your business are protected with a CGL.

General Liability Insurance offers third-party coverage for bodily injury and property damage, which includes:

• Legal expense costs
• Court fees
• Medical bills
• Property repair
• Third-party settlement imposed upon your business

Premises Exposures

According to the Occupier’s Liability Act, an “occupier” is a person who is in physical possession of the premise, or who has responsibility for and control over its condition. This higher level of responsibility places a heavy onus on the property owner, especially when the guest is there for the occupier’s gain.

This can be as simple as a slip and fall under winter conditions, up to a more serious situation such as death caused by the property or operations of the premise. It is therefore of utmost importance to keep your premise clean, free from hazard, and well-designated with signs when the activities are inherently dangerous.

Off-Premises Exposures

By nature, an off-premises exposure is more difficult to control. Variables associated with the execution of your work are harder to control once away from the premise.

Examples of this include:

• A client is injured while walking across your construction site
• A spill occurs during delivery that causes property damage
• Your employee fails to secure a customer’s property when leaving, resulting in a break-in
• An injury occurs as a result of equipment being run by your employee
• Failure of the work executed by the business which causes damage to property

A proper review with careful consideration of the exposures off-site can keep your employees safe, your customers happy, and mitigate your risk. A well-organized property and communicated procedure manual are also helpful tools in managing risk.

Past Services and Company Products Liability Insurance

The second most common form of Commercial General Liability Insurance revolves around services you have completed in the past and the products you offer. Some examples of Past Services and Company Products Liability Insurance include:

• A food product you sell is recalled due to contamination, but some buyers have become sick from consuming the product
• A retaining wall you built for a client less than a year ago that has begun to crumble and damage other parts of the property
• A bicycle your company manufactures has a defect that has been causing riders to fall and injure themselves

Coverage through this policy type prepares you for future problems related to your products and services. It is a very specific form of Commercial General Liability Insurance.

Some of these exposures may require you to purchase a higher limit and apply special endorsements or forms of coverage. This is why it’s very important that a full review of a business’ policies, procedures, and supply chain is done. This may uncover a further need for other liability exposures such as:

• False advertisements
• Copyright infringement
• Privacy violations
  • Environmental exposures
  • Slander
  • Reputation damage
  • Errors and omissions

Taking the time to properly determine your entire liability exposure minimizes your risk, protects you financially, and could uphold the goodwill of the business.