07/09/2019

Commercial general liability insurance - explained

Insuring a business is a completely different ball game than simply insuring a home or vehicle. We’re often asked why businesses require the additional coverage, and what kind of policies are available. As your trusted companion, we’ve broken it down for you!

Commercial General Liability insurance (or CGL for short), is an insurance policy issued to businesses to protect against liability claims for bodily injury and property damage to third parties arising from your business premises, operations, products and completed operations.

In Canada, business owners owe a duty of care to the public regardless of the type of business they operate. Due to the nature of the business, it’s particularly important for General Contractors to have this coverage in place. It’s equally necessary for Subcontractors too, as they experience the same risks as the generals do!

CGL insurance includes various types of coverage for contractors and subcontractors.
Some include:

Bodily injury to third parties.
This means coverage for physical injury, or illness that results from your business.
For example - You’ve stepped away from your work area for just a moment. Meanwhile, the homeowner whose home you’re renovating injures themselves by tripping over the equipment you’ve left unattended.

Product liability.
This is coverage for body injury or property damage from a defect in your finished product.
For example - You’ve installed new kitchen cabinets in someone’s home. Just a few short weeks after project completion, you receive an alarming phone call. Not only did a defect cause one of the upper cabinet doors to come crashing down, it also chipped the countertop on it’s way down, and landed on the homeowner’s foot!

Property damage to third parties.
This is coverage for damage caused to the property of others.
For example - You’re installing new siding on a home. The project is going swell, until a few slats get caught in the breeze. In the blink of an eye, they go flying into neighbour’s driveway, where they scratch their parked vehicle!

Accidents happen, and it’s crucial that the proper coverage is in place to save your business from a financial burden! We can help you reduce your risk by building a CGL insurance policy on a strong foundation, customized to your business. Click here to get in touch with our Commercial Account Executive!