---
title: "CGL Insurance: 7 Questions, Answered"
description: "Learn about Commercial General Liability (CGL) insurance, its coverages, exclusions, and cost factors. Find out how it protects businesses and where to get it in Ontario.\n\n==="
image: https://buildsure.ca/hubfs/Buildsure%20CGL.png
---

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# CGL Insurance: 7 Questions, Answered

![Ryan Bennett](https://buildsure.ca/hs-fs/hubfs/Ryan.jpg?width=50&height=50&name=Ryan.jpg)

 by [Ryan Bennett](https://buildsure.ca/blog/author/ryan-bennett)

November 25, 2024 at 10:02 AM

## What does CGL mean in insurance?

CGL means Commercial General Liability insurance, a product that is applicable to most businesses. CGL is one of the most widespread and widely applicable coverages, which most businesses should have (including small businesses). 

Businesses left without CGL insurance can be held financially responsible for any damages that occur on their premises, damages caused by their products, or in the process of conducting business or providing their services. Often, this will be one of the first insurance policies that a business insurance advisor will discuss with their client. This coverage protects businesses a large number of potential risks (though not all); this is why the product is called “Commercial **General** Liability.” 

 

## What does CGL insurance include?

There are several different levels of coverage that a CGL policy might have, but typically, the policy will include property damage, bodily injury, personal injury and advertising injury. 

However, CGL insurance policies can include additional coverage. One of these additional elements might be premises coverage, which safeguards the business against the financial burden of claims that may occur on their premises when conducting business. 

Additionally, in a CGL policy, the named insured can be an individual or a business. 

 

## What damages are covered by a CGL policy?

### Property damage

Coverage for damage to someone else's property resulting from your regular business operations or caused by your employees. 

### Bodily injury

Coverage for someone else’s injuries resulting from your regular business operations or caused by your employees. 

### Personal injury

Coverage for personal injuries that businesses could be sued for, like invasion of privacy, libel, copyright claims and more. 

### Advertising injury

Coverage for advertising injury resulting from damages caused by intellectual theft, trade dress infringement or copying another business’s slogan. 

Extensions may include: 

### Legal Costs

A CGL policy also covers the cost to defend your business against a claim in court, including the cost to compensate a third party. 

### Tenants’ Legal Liability

Tenants’ legal liability is another extension that is often present in a CGL policy. This extension helps protect your rented premises of a landlord's property you may be legally responsible for. This covers specific perils such as fire, smoke, water damage, smoke.  

 

## What is not covered under a CGL policy?

While CGL policies protect businesses from a wide range of risks, there are many other damages that a CGL policy will not cover, including: 

- Intentional or expected damage

- Pollution Liability

- Commercial Auto

- Crime

- Employee injuries

- Contractual liability

- Liquor liability

- Personal property

- Coverages located on other policies

 

## What does CGL insurance cost?

The cost of a CGL policy in Ontario can vary widely, depending on several cost factors, which include (but are not limited to the following). 

### Cost Factors

- Business operations

- Percentage of revenue from builds, i.e. midrise or single-family homes

- Number of employees

- Annual revenue

- Risk profile

- Claims history

### Examples of costs

A home builder with $2 million CGL insurance who builds 2 homes a year, might pay $1,500, while a home builder that builds 100 homes a year may pay $50,000.  

### Coverage limits

Increasing the policy limits can increase premiums  

The typical CGL policy limits we see most builders carry is $2,000,000-$10,000,000.  

 

## Where can you get CGL insurance in Ontario?

When shopping for CGL insurance in Ontario, you must purchase a policy through a licensed business insurance broker. It’s always best to work with insurance advisors who are risk management experts in your field, which is why we’ve created the Buildsure program for homebuilders, contractors, and construction companies. 

Our team of experts utilize their decades of expertise and leverage their market connections to deliver unbeatable value across many types of coverage. Contact us today for a risk review and discover the advantages of the Buildsure Program. 

![Ryan Bennett](https://buildsure.ca/hs-fs/hubfs/Ryan.jpg?width=50&height=50&name=Ryan.jpg)

Post by [Ryan Bennett](https://buildsure.ca/blog/author/ryan-bennett)  
 November 25, 2024 at 10:02 AM

 Ryan Bennett is the Founder of Buildsure, and authority on construction insurance. Over the last twenty years, Ryan has partnered with clients in the construction industry and, through his experience, created Buildsure because he knew there was a better way to serve builders.

[Follow me on LinkedIn](https://www.linkedin.com/in/ryan-bennett-9386357/)

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