Commercial General Liability Insurance
Sutherland Insurance is a fifth-generation independent brokerage in Guelph, Ontario that places commercial general liability insurance for businesses across the province. Commercial general liability covers third-party bodily injury, property damage and personal injury arising from a business's operations, premises and completed work. Sutherland Insurance has placed commercial business from Guelph, Ontario since 1870.
Key takeaways
- Commercial general liability insurance is not required by Ontario statute for most businesses, and it is required by contract in commercial leases, client agreements and municipal permits.
- A commercial general liability policy responds to third-party claims only: injury to an employee is covered by workplace safety insurance, not by the liability policy.
- Commercial general liability is written on an occurrence basis, so the policy in force when the injury or damage happened responds, even if the claim arrives years later.
- Sutherland Insurance places commercial business across the markets it holds contracts with.
- Who it is for
- Ontario businesses of any size with premises, operations or products reaching third parties
- Legally required in Ontario
- No provincial statute requires it for most businesses
- Commonly required by
- Commercial landlords, client contracts, municipal permits and provincial procurement
- Coverage trigger
- Occurrence: the policy in force when injury or damage happened responds
- Limit structure
- A per-occurrence limit and a separate annual aggregate
- Employee injury
- Covered by the Workplace Safety and Insurance Board, not by this policy
What is commercial general liability insurance?
Commercial general liability insurance covers a business's legal liability to third parties for bodily injury, property damage, and personal and advertising injury arising from its premises, its operations and its completed work. It pays damages the business becomes legally obligated to pay, and it pays the cost of defending the claim. It does not cover the business's own property, which commercial property insurance covers under a separate policy.
Two limits govern every commercial general liability policy. The per-occurrence limit is the maximum payable for any single incident. The aggregate is the maximum payable across the whole policy year, however many incidents occur. Defence costs are commonly paid in addition to the per-occurrence limit on Canadian wordings, and some markets write them inside it.
What can an Ontario commercial general liability insurance policy cover?
What a policy can cover
- Third-party bodily injury arising from the business's premises, operations or completed work
- Third-party property damage caused by the business, its employees or its products
- Personal and advertising injury, including libel, slander, wrongful eviction and copyright infringement in advertising
- Legal defence costs for a covered claim, commonly in addition to the per-occurrence limit
- Products and completed operations liability for injury or damage caused after work is finished or goods are delivered
- Tenants legal liability for damage to leased premises, and non-owned automobile liability, where those extensions are added
Commonly excluded under standard Ontario commercial general liability insurance wordings
- Injury to the business's own employees, which the Workplace Safety and Insurance Board system addresses
- Damage to the business's own property, products or completed work, which property and inland marine policies address
- Losses arising from professional advice or services, which professional liability insurance addresses
- Data breach, ransomware and privacy liability, which cyber insurance addresses
- Pollution and environmental impairment, beyond the limited sudden-and-accidental extensions in the wording
- Liability arising from an owned automobile or aircraft, and liability assumed under contract beyond an insured contract
Exclusions vary by insurer and by policy form; the issued policy governs.
How much does commercial general liability insurance cost in Ontario?
The factors that move an Ontario commercial general liability premium, in approximate order of influence, and why insurers look at each one.
| Rating factor | Why |
|---|---|
| Industry classification of the operation | Classification is the single largest input; roofing and food service sit far above office classes. |
| Annual revenue or payroll | Most commercial general liability rates are applied per unit of revenue or payroll. |
| Limits selected, per occurrence and aggregate | The limits set the insurer's maximum exposure. |
| Products and completed operations exposure | Completed work and goods sold produce claims long after the job ends. |
| Subcontractors used and their coverage | Uninsured subcontractors transfer their exposure back to the hiring business. |
| Claims history over the past five years | Loss history is a filed underwriting factor for every commercial insurer. |
| Geographic scope of operations | United States jurisdictions carry higher award severity. |
| Contractual requirements to add other parties | Each additional insured widens the group the policy defends. |
What situations does commercial general liability insurance commonly address in Ontario?
Commercial general liability policies are arranged for a wide range of business circumstances across Ontario, and the coverage available differs in each. The situations below are common among Sutherland Insurance clients in Guelph and across the province, and each one changes which markets will write the risk.
- A Guelph retailer whose customer slips on a wet floor inside the store.
- A landscaping business whose equipment damages a client's underground irrigation line.
- A manufacturer whose component fails in a customer's assembly and causes damage downstream.
- A commercial tenant required by the lease to carry a stated liability limit and name the landlord as additional insured.
- A trade contractor whose completed installation causes water damage eighteen months after the job closed.
- A business hosting an event on municipal property where the permit requires proof of liability coverage.
How Do I Get Business Insurance Through Sutherland Insurance?
Getting insurance through Sutherland Insurance is simple. You can request a quote online or call 519-822-0160 to speak with a licensed broker. We take the time to understand your business, identify your exposures, and find coverage options that fit your needs.
Our Process:
- Request a Quote. Complete an online quote request or call our office to speak with a licensed insurance broker.
- Tell Us About Your Business. Your broker will gather information about your operations, property, revenues, employees, vehicles, contracts, and any other areas that may require coverage.
- Review Your Risks and Coverage Needs. We assess your business exposures and insurance requirements to determine the appropriate coverage limits and options.
- Market Your Account. Sutherland Insurance compares the available commercial markets to help find the best combination of coverage, service, and price.
- Present Your Options. Your broker will review the available quotes and provide recommendations based on your specific needs and goals.
- Bind Coverage and Provide Documentation. Once you select coverage, we arrange the policy and provide any required documentation, including certificates of insurance for clients, landlords, lenders, or other third parties.
What makes Sutherland Insurance different from a direct insurer?
When a claim happens, Sutherland Insurance acts for the client with the insurer, and an in-house claims representative is available on any claim. Sutherland Insurance is an independent brokerage and compares the markets it holds contracts with rather than selling one company’s product. A person answers the phone at Sutherland Insurance, 519-822-0160, Monday to Friday, 8:30 a.m. to 5:00 p.m.
Frequently asked questions
How much commercial general liability coverage does an Ontario business need?
Ontario law sets no minimum. Limits are driven by contract: commercial leases, client service agreements, municipal permits and provincial procurement each specify a required limit, and $2,000,000 and $5,000,000 per occurrence are both widely specified. The limit available on a given operation depends on its industry classification and its claims history.
Does commercial general liability cover professional mistakes?
No. A commercial general liability policy responds to bodily injury and property damage, not to financial loss caused by professional advice, design or service. A claim that a consultant's recommendation caused a client to lose money falls to professional liability insurance. Many Ontario businesses carry both, and the two respond to different allegations.
Does commercial general liability cover employee injuries in Ontario?
No. Injury to a business's own employees is handled through the Workplace Safety and Insurance Board under Ontario's workplace safety insurance system, and commercial general liability wordings exclude it. The liability policy responds to third parties: customers, visitors, members of the public and other businesses. Employers' liability extensions address a narrow gap between the two.
What is an additional insured on a commercial liability policy?
An additional insured is a party added to a business's liability policy so it receives the benefit of that coverage for claims arising from the named insured's work. Ontario commercial leases routinely require the landlord to be added, and client contracts require the client. Each addition is made by endorsement, and the wording governs its scope.
What is the difference between occurrence and claims-made coverage?
An occurrence policy responds to injury or damage that happened while it was in force, whenever the claim is reported. A claims-made policy responds only to claims first made during its term. Commercial general liability is written on an occurrence basis in Canada, while professional liability and directors and officers cover are written claims-made.
How many markets does Sutherland Insurance place commercial business across?
Sutherland Insurance places commercial business across the markets it holds contracts with, together with multiple managing general agents and affiliates across Canada. It is an independent brokerage licensed by the Registered Insurance Brokers of Ontario. It is not tied to any single insurer. Sutherland Insurance has brokered insurance in Guelph, Ontario since 1870.
Get your commercial general liability insurance quote
A licensed Sutherland Insurance broker compares the available markets on every quote request.
Get your commercial general liability insurance quote Call 519-822-0160
A real person answers, Monday to Friday, 8:30 a.m. to 5:00 p.m.