What commercial general liability is intended to address
Commercial general liability—often called CGL—can respond to covered allegations that business operations, premises, products or completed work caused bodily injury or property damage to another party. It can also include defence provisions and specified personal or advertising injury coverage, subject to the wording.
The policy does not pay every cost simply because someone makes a demand. The alleged event, insured party, territory, timing, exclusions and limits all matter.
Match the policy to the operation
Explain locations, products, services, work away from the premises, subcontractors and revenue by jurisdiction. A retailer, consultant, contractor and manufacturer may all purchase CGL but require different classifications and extensions.
Products and completed operations, tenants’ legal liability, non-owned automobile, employee benefits liability and property in the business’s care may be included, limited or separately arranged depending on the form.
Know what requires another policy
CGL is not a substitute for:
- Professional liability for covered financial loss from advice or services
- Commercial property insurance for the business’s own property
- Cyber insurance for specified privacy and network events
- Commercial automobile, directors and officers or employment-practices coverage
- A dedicated pollution form where the exposure is not covered by the CGL wording
Intentional acts, known matters, contractual assumptions and damage to the business’s own work or product may be excluded or limited.
Review limits, deductibles and contracts
Ask how the each-occurrence and aggregate limits operate, whether products and completed operations share an aggregate, and whether a deductible or self-insured retention applies. Customer and landlord contracts may require additional insured status, primary wording or waivers that need insurer approval.
The Occupiers’ Liability Act addresses duties of occupiers in Ontario. Legal duties and contract obligations exist independently of insurance.
Respond promptly to incidents and claims
Document incidents, preserve relevant evidence and notify the broker or insurer according to the policy. Do not assume a demand is too small or premature to report. The insurer determines coverage after reviewing the facts and wording.
Prepare the submission
Gather revenue by activity and geography, payroll, locations, products, subcontractor use, contracts and loss history. Contact Westoak to compare the limits and extensions with the actual operation rather than purchasing a generic certificate.