Business Liability Insurance in Ontario

As a business owner, you know how important it is to have a complete business plan that includes all the risks your company might face. That kind of risk can come out of the blue and be caused by accidental losses. 


When you have business liability insurance, you can focus on what's essential to do to reach your business goals. This protects your company from these risks and gives you peace of mind.


Because we're based in Ontario, we know that every business is different in its own way. We can help you find a business in any field, from the service industry in the middle of Thunder Bay to the logging industry outside the city's busy streets. It's easy to see why so many people choose to live and work in Ontario.


We know that you and your business need to protect what's most important to you. Our professional insurance agents are here to make sure you're safe so you can focus on growing your business.


How Business Liability Insurance in Ontario Works

Business (Commercial) General responsibility (CGL) protects you from claims of responsibility that come up because your operations hurt someone or damage their property. When claimants are looking for damages, liability coverage reacts to third-party claims and actions. 


People could sue you for injuries and property damage caused by your workers, your products, your finished work, or something that happened on your property. 


If you're legally responsible for hurting someone, having legal liability insurance will help pay for your defence and any losses to a third party.


Our business insurance experts can quickly figure out the risks your company may face and the possible financial losses that could put it at risk, no matter what industry it's in.


What does Business Liability Insurance Ontario mean?

If your business is sued for hurting someone or damaging their property, liability insurance will protect you. Your advisor can help you pick the protection that's best for your business, its workers, and its directors.


Talk to a local financial advisor about liability insurance. They can give you more information on it and a full list of jobs that are covered by Errors & Omissions insurance.

General Liability 

General liability insurance will protect your company if someone gets hurt or their property is damaged because of your product, an accident at your business, or at a customer's location.

Our business plans cover four types of claims under General Third-Party Liability:

  • Physical harm
  • Damage to property
  • Personal and advertising harm, such as slander or libel
  • Medical Expenses

A cheap way to protect your business in case you ever have to fight a claim against it in court is to get general liability insurance. As long as your insurance limits are met, this coverage will pay for damages found by the courts to be your fault and your legal defence fees and settlement costs.


Pick from our list of agreements to make your coverage fit your needs. Some of the coverages we offer are:

  • Liability for Cars Not Owned
  • Legal Responsibility of Tenants
  • Cyber Guard Select protects you from lawsuits when cyber events or regulatory breaches happen.

The Umbrella Liability

Umbrella liability coverage gives you extra protection against liability on top of what your current insurance covers. It covers you if your current plans' liability limit is reached and if your business is sued by someone else for harm or damage to their property, whether it's in the United States or another country.

When you get umbrella liability insurance, you'll get:

  • A more general meaning of "bodily injury"
  • Coverage around the world
  • Coverage for registered cars with a standard excess auto policy

Directors & Officers Liability

The people on your board of directors are in charge of keeping an eye on your business. They have to do what's best for the company and act in good faith. When something goes wrong, and your group gets sued, board members and other officers may be held personally responsible. In some cases, resigning or being protected by the board may not be enough to protect them.


With Directors and Officers coverage, your board members won't be able to be sued by your organization, whether it's a family-owned business, a charity, a school or church building, or a community group. Your policy covers the following:

  • Losses caused by wrongdoing on your part or someone else on your policy
  • Costs of a legal defence

The directors and officers of an organization may be personally liable in addition to the company being liable.

Errors & Omissions (E&O)

Errors & Omissions (E&O) insurance was first made for professionals like lawyers, doctors, and engineers. But as more jobs have opened up and service standards have risen, so has the need for E&O insurance. If you offer a professional service, you need E&O insurance, which is also called Professional Liability insurance.


A professional is any person, business, or group that offers professional services for a fee, especially if their job requires them to:

  • A time for academic and hands-on training
  • A dedication to strict professional rules, principles, and service standards

Rules at the provincial or national level

People who have little to moderate professional exposure are eligible for our coverage. This includes travel, real estate, or job agencies, consultants, bookkeepers, and other self-employed people. The following things are covered by errors and omissions insurance:

  • Breach of contract
  • Defective designs
  • Delay in delivery
  • Inaccurate advice or information
  • Typographical errors
  • Incorrect appraisals

Costs That CGL covers

This is where business general liability (CGL) comes in to help pay for things like third parties for losses you're legally responsible for, such as:

  • Individuals who have been hurt and are unable to work may have lost pay.
  • Damage or loss of use of property that costs money to fix
  • Getting paid for property damage or loss
  • Legal fees to defend your business against claims, no matter who is at fault
  • Expenses for medical care if someone gets hurt on your property or because of your product

How much CGL coverage does your company need?

We know that every business is unique, so your risk will be different from that of businesses nearby. What amount of coverage is needed will depend on three things. These are the type of business, the perceived risk, and the liability for the premises and activities.

Which types of businesses need liability insurance?

No matter what kind of business it is or how much money it makes, it has the potential to hurt or damage other people. Legal fees and court decisions are pricey, and one event could make it impossible for your business to survive in the future. As a business owner, you need to make sure that your risks are well handled by getting the right insurance policy.

Does your company have its own cars?

We can also help you with your car insurance! Get in touch with us right away to make sure you're covered on the road.

How much does Ontario business liability insurance cost?

In Ontario, businesses are not all the same, and neither are the risks and factors that affect the cost. The cost of your business risk insurance will depend on the following:

  • Business industry
  • History of Claims
  • The number of employees
  • Revenue
  • Risk exposure 
  • Business Location

FAQS on Business Liability Insurance in Ontario

Q1. What is business liability insurance, and why do I need it?

Business liability insurance, often referred to as Commercial General Liability (CGL) insurance, protects your business from claims of responsibility that arise when your operations cause harm to someone or damage their property. It is essential because it can cover legal defense costs and damages in case someone sues your business for injuries or property damage.

Q2. What types of claims does general liability insurance cover?

General liability insurance typically covers four types of claims: bodily injury, property damage, personal and advertising harm (e.g., slander or libel), and medical costs.

Q3. What is umbrella liability coverage, and why should I consider it?

Umbrella liability coverage provides additional protection on top of your existing liability insurance. It comes into play when your current insurance coverage limits are reached. It can protect your business if you're sued for harm or property damage, whether in the United States or another country.

Q4. What is Directors and Officers (D&O) Responsibility insurance, and why do board members need it?

D&O Responsibility insurance protects board members from personal liability when they are sued on behalf of the organization. It is crucial because, in some cases, personal assets may be at risk when legal issues arise within the organization.

Q5. What is Errors & Omissions (E&O) insurance, and who should consider it?

E&O insurance, also known as Professional Liability insurance, is designed for professionals who provide services for a fee. It is essential for anyone offering professional services, such as consultants, lawyers, doctors, and others who may be at risk of claims related to errors or omissions in their work.

Q6. How much liability coverage does my business need?

The amount of liability coverage needed depends on your business's type, perceived risks, and liability associated with your premises and activities. It's essential to assess your unique business risks and consult with an insurance expert to determine the appropriate coverage.

Q7. Do all businesses in Ontario need liability insurance?

Regardless of the business type or size, all businesses have the potential to cause harm or damage to others. Legal fees and court judgments can be expensive, so having liability insurance is crucial to protect your business and its future.

Q8. How much does business liability insurance cost in Ontario?

The cost of business liability insurance in Ontario varies based on factors like the type of business, claims history, the number of employees, cash flow, and the level of risk. It's best to consult with an insurance provider to get a customized quote based on your business's specific needs and circumstances.


Q9. Do you offer car insurance for businesses with their own vehicles?

Yes, we also offer car insurance for businesses with their own vehicles. Please contact us to ensure your business is adequately covered on the road.

Q10. How can I determine the right insurance coverage for my business in Ontario?

To determine the right insurance coverage for your business in Ontario, you should consult with a local financial advisor or insurance expert who can assess your business's unique risks and provide guidance on the appropriate coverage options.


You can also check the information regarding Small Business Insurance in BC

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