What does commercial general liability insurance actually cover for a small Ontario business?

Commercial general liability (CGL) insurance is designed to cover claims that your business's operations caused bodily injury or property damage to someone outside the business — a customer who slips and falls at your premises, a contractor who accidentally damages a client's property, or a visitor injured by something your business did or failed to do. It typically covers the cost of defending against such a claim, which can be substantial even if the claim is ultimately unsuccessful, as well as any settlement or judgment up to the policy's limits, and often extends to certain advertising-related claims depending on the policy.

CGL is generally not designed to cover your own business's property, that is commercial property insurance, your professional advice or services, that is professional liability or errors and omissions insurance, your own employees' workplace injuries, that is WSIB, or your own products causing harm once they leave your control, which is closer to product liability. Because coverage details, exclusions, and limits vary significantly between insurers, reviewing the actual policy wording rather than assuming "general liability" covers everything matters, especially before signing a commercial lease or a client contract that requires specific coverage limits.