Commercial General Liability
Commercial general liability insurance
The baseline policy your clients, landlords and contracts will ask you to carry.
General liability answers the claims that arrive without warning — a customer hurt on your premises, damage you cause at a client site, or a problem traced back to the product you sold. It also pays the legal defence costs, which often arrive long before anyone decides who was at fault.
Get early accessWhat it covers
Three things sit at the core of a general liability policy: bodily injury to someone who is not an employee, damage to property you do not own, and the cost of defending you when either is alleged.
That covers the slip in your entryway, the laptop your technician knocks off a client’s desk, and the claim that your product caused harm after it left your hands. Defence costs are the part businesses underestimate — a claim that never reaches a courtroom can still take months of legal work to close.
Who needs it
Almost every business that meets clients, visits sites, or sells a physical product is asked for it eventually. Commercial landlords require it before handing over keys, prime contractors require it before a subcontractor sets foot on site, and enterprise clients require it before signing a master services agreement.
A $2 million limit is the figure most Canadian contracts name. It is common enough that many businesses buy the policy to satisfy a contract first, and only later discover it was the coverage they most needed.
What it does not cover
General liability is not a catch-all. It does not cover mistakes in professional advice or services — that is errors and omissions cover. It does not cover damage to your own building, stock or equipment, which is commercial property insurance. It does not cover injuries to your own employees, which provincial workers’ compensation handles.
Knowing these edges matters, because a business that assumes one policy does everything usually finds out otherwise at the worst possible moment.
Sample pricing
| Business profile | Example coverage | Sample monthly | Sample annual |
|---|---|---|---|
| Solo consultant | $2M general liability + $1M E&O | $45/mo | $540/yr |
| Contractor, 2 crew | $2M general liability + $25k tools | $135/mo | $1,620/yr |
| Retail shop | $250k contents + $2M liability | $110/mo | $1,320/yr |
| Restaurant, 30 seats | Property + liability + interruption | $260/mo | $3,120/yr |
Illustrative figures only — not a quote. What you actually pay is driven by your industry, annual revenue, claims history, and the policy limits you choose.
Frequently asked questions
General liability
What does commercial general liability actually cover?
Three things: bodily injury to someone who is not your employee, damage to property you do not own, and the legal costs of defending you when either is alleged. In practice that is the customer who slips in your shop, the equipment your crew damages at a client site, and the claim that your product caused harm.
How much general liability coverage do I need?
Most Canadian commercial contracts name $2 million, and many businesses buy that limit simply because a client or landlord asked for it. The right figure depends on your industry, how much public contact you have, and what your agreements require — a contractor on large sites is often asked for $5 million.
Is general liability the same as professional liability?
No. General liability answers whether you injured someone or damaged their property. Professional liability, also called errors and omissions, answers whether your advice or work was wrong. A client tripping in your lobby is general liability; a report that costs them a contract is E&O. Many contracts require both.
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