How Does General Liability Insurance Work In Canada?
Perhaps you’re expanding your business, launching a new bricks-and-mortar location and wondering, “How does general liability insurance work in Canada?” Or maybe you are looking to start up a new cannabis business and want to know, “What does general liability insurance cover?” Whatever your new or growth plans entail, understanding why you need general liability insurance and how it works in Canada is a foundational part of any business plan.
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General liability, also known as commercial general liability insurance (CGL), is liability coverage specifically designed to provide your business operations with protection against claims of bodily injury and property damage as they relate to your business operations, products, premises, completed operations as well as personal injury and advertising and personal injury liability.
General business liability insurance coverage can help respond to everyday situations that you will face when operating a large or small business in Canada. Some scenarios that a general liability insurance policy covers include:
- Someone who is perusing your bricks-and-mortar store, slips on a wet floor and breaks their leg.
- Workers accidentally damage the building next door to the one that they’ve been hired to renovate.
- A leaky toilet fixed by a plumber you hired results in business property damage to a business operating below yours.
What to Look For in General Liability Insurance in Canada?
When investigating general liability insurance coverage options for your Canadian business, you should be aware that general liability coverage is known to exclude liability for financial losses associated with services provided to clients for a fee (aka professional services). It is also:
- Broad in scope
- Designed to cover slip and falls, product liability issues, accidental damage by a business tenant to a leased location, etc.,
- Specifically designed to cover bodily injury or property damage caused to third parties
Meanwhile, errors & omissions insurance – aka E&O or professional indemnity, works to cover organizations and individuals from liability for alleged financial loses their clients could bring against them based on advice and/or services they provided or didn’t provide to clients who have paid them for their advice and/or services. Bodily injury or property damage resulting from professional services performed are mostly excluded – with the exception of a few professions such as engineers and architects.
Although general liability insurance policies cover bodily injury or property damage resulting from professional services performed, these are mostly excluded with E&O insurance – with the exception of a few professions, such as engineers and architects.
Where Can I Get a Quote for General Liability Insurance in Canada?
From coast-to-coast-to-coast, ALIGNED insurance brokers know how to find professional liability insurance options for your business. Find out your general liability insurance cost by getting a quote. You’ll just need to complete a business interruption worksheet and a statement of values.
For More Information Regarding How Does General Liability Insurance Work In Canada? Or To Get General Liability Insurance For My Business In Canada, Connect With One Of Our Canadian Insurance Brokers Today at 1-866-287-0448
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100% Canadian-owned, ALIGNED is a premiere insurance brokerage that serves thousands of clients across the country. ALIGNED’s offices in Toronto, Calgary, and Vancouver are supported by a national operations centre in Cambridge, Ontario. Uniquely within the industry, ALIGNED creates, negotiates and delivers the best business insurance and risk management strategies/solutions to organizations like yours.