A standard Ontario CGL policy typically covers:

• • Third-party bodily injury (e.g., a customer slips and falls at your premises)

  • Third-party property damage (e.g., your employee damages a client’s property)

  • Personal and advertising injury (e.g., libel, slander, copyright infringement in advertising)

  • Legal defense costs, even if the claim is groundless

Importantly, legal fees are often covered in addition to policy limits, depending on the insurer and wording. Since legal costs in Ontario can escalate quickly, this is a critical component of the policy.

CGL is not legally required by provincial law in most industries. However, it is often:

• • Required by commercial landlords

  • Required in construction contracts

  • Required by government tenders

  • Requested by corporate clients

Without CGL, many Ontario businesses simply cannot secure leases or contracts. In regulated industries (like construction or certain trades), proof of liability insurance is effectively mandatory to operate competitively.

CGL policies do not cover everything. Common exclusions include:

• • Professional errors or advice (requires Errors & Omissions insurance)

  • Employee injuries (covered under WSIB in Ontario)

  • Intentional acts

  • Your own faulty workmanship (though resulting damage may be covered)

  • Cyber liability and data breaches

For example, if you are a consultant who gives incorrect advice that causes financial loss, that claim would fall under Professional Liability, not CGL.

Most small businesses in Ontario carry:

• • $1 million per occurrence (minimum common standard)

  • $2 million aggregate

  • Higher limits (e.g., $5 million) for construction, manufacturing, or higher-risk industries

The appropriate limit depends on:

• • Industry risk level

  • Contractual requirements

  • Size of projects

  • Customer exposure

  • Asset protection strategy

Many commercial landlords in Ontario require at least $2 million in liability coverage.

Premiums vary depending on:

• • Industry type

  • Revenue

  • Payroll

  • Claims history

  • Location

  • Risk exposure

Approximate annual ranges:

• • Low-risk businesses (consulting, office-based): $400–$900

  • Retail or light service businesses: $800–$2,000

  • Contractors and higher-risk trades: $1,500–$5,000+

Pricing also depends on whether additional endorsements are needed (e.g., additional insureds, waiver of subrogation, cross-liability).