Compare Commercial General Liability Insurance Quotes

What is commercial general liability insurance?

Commercial general liability insurance is a type of coverage for businesses that financially protect their owners from third-party claims.

Let’s say a customer is injured at your store, or you damage a client’s property at your office. If those individuals bring a lawsuit against your business, commercial general liability insurance would help cover the legal costs of defending your business in court. If you lose that lawsuit, and a court rules you owe your client or customer damages, this type of insurance typically covers those damages as well.

What does general liability insurance cover?

Commercial general liability insurance typically covers the legal costs and damages associated with certain types of claims. These coverage areas include:

• Bodily injury liability: claims that allege your business operations are responsible for injuries to a third party, or damage to their property.
• Personal and advertising injury liability: claims that allege your business committed libel, defamation, slander, or false advertising.
• Product liability: claims that allege a product you sell or supply caused bodily injury or property damage.
• Tenant’s legal liability: claims that allege you or your employee(s) damaged the space you rent or occupy.

Is general liability insurance mandatory in Canada?

Like business insurance, commercial general liability insurance is not mandatory in Canada. However, it is highly recommended for all businesses. Accidents can matter in a matter of seconds, but they could spur claims that take a long time to resolve — and financially recover from. Legal fees and damages can run extremely high.

Who needs general liability insurance?

We strongly recommend commercial general liability insurance coverage for all businesses, no matter how big or small. Interacting with third parties — whether that be customers, clients, vendors, suppliers, or even other businesses — is a critical part of running any business, but it also necessarily exposes you to a wide range of third-party claims.

Having a commercial general liability insurance policy in place is especially wise if you frequently interact with clients, either on your commercial property, in your home, or at their homes. This type of coverage is also recommended if you have employees who perform work off-site on property you don’t own.

What is not covered by commercial general liability insurance?

Some types of claims are not covered by this type of insurance. These include:

• Intentional criminal acts
• Patent infringement
• Contractual liability

Other types of claims are not covered by commercial general liability insurance, but are covered by other types of policies instead:

• Claims involving motor vehicles or automobiles. As a business owner, you are generally responsible when your employees inflict damage while operating vehicles on behalf of your business. These types of claims are covered by a separate type of coverage called commercial auto insurance.
• Claims involving advice or professional services you provide. Let’s say you give a client professional advice that turns out to be inaccurate, or one of your employees injures a customer while providing services on behalf of your company. Commercial general liability insurance won’t cover the legal fees associated with these types of claims. Instead, you’ll have to buy professional liability insurance — also known as errors and omissions insurance.

How much does general liability insurance cost?

The exact cost of a commercial general liability insurance policy depends on a variety of factors like the industry you’re in and the number of years your business has been operating. In general, though, small to medium-sized businesses can expect to pay about $450 per year on a policy with a $2 million limit.

How to get the cheapest commercial general liability insurance quotes

When looking for a commercial general liability insurance policy, you’ll want two things: a plan that meets the unique needs of your business, and a competitive rate.

The best strategy for finding the right plan for you is twofold. First, get a good understanding of the specific risks you’re exposed to, given your industry and your unique business operations. When you overinsure your business, you unnecessarily raise your premiums. At the same time, underinsuring your business can expose you to financial losses.

The second step is to compare offers by different insurance companies. At RATESDOTCA, we’ve come up with an easy, streamlined process to help you find the best coverage at the best price. Here’s how it works:

• Tell us about your business by answering a few questions.
• Compare quotes from different insurance companies side by side — free of charge.
• Choose the right protection plan for your business.
• Connect with the insurer and secure your policy.