General Liability Insurance for Small Business: Questions to Ask Before You Buy a Policy in Ontario

A customer slips on a wet floor in your shop. A contractor’s ladder falls and damages a client’s property. A product you sell causes harm after it leaves your hands. These are the kinds of claims general liability insurance is built for, and they can happen to any business that deals with the public.

Still, two general liability insurance small business owners buy can look similar on a quote and respond very differently to a claim. The limits, exclusions and wording matter. This guide covers the questions to ask before you buy commercial general liability insurance in Ontario, so the policy fits the business you actually run.

What Does General Liability Insurance Cover?

Commercial general liability, often called CGL, protects your business when a third party claims your operations caused them harm.

At Surnet, CGL coverage can include:

• Bodily injury and property damage liability: Injuries or damage caused by your business, employees or products
• Personal injury liability: Claims such as libel or slander
• Medical payments: Minor medical expenses for accidents on your business premises
• Tenants’ legal liability: Protection for rented space in case of fire, smoke or water damage

Product liability, cyber liability and professional liability for service errors are also available.

Any business that interacts with clients, customers or vendors should consider commercial liability coverage, from retailers and contractors to consultants and service providers.

Question 1: Does the Policy Match What My Business Actually Does?

Insurers classify your business based on the activities you describe. If your policy lists you as a consultant but you also install equipment at client sites, a claim from that installation work could be disputed.

Give your broker a full description of:

• Every service you provide and every product you sell
• Where the work happens, including client sites and job sites
• Whether you use subcontractors
• Your annual revenue and payroll

Update your broker whenever you add a new service.

Question 2: How Much Coverage Do I Need?

According to Surnet, most businesses choose $1 million to $5 million in liability coverage, and higher limits may be required for high-risk industries.

The right limit depends on your industry, your contracts and the size of a realistic claim. Ask your broker:

• What is the per-occurrence limit, and is there an aggregate limit for the policy term?
• Do my contracts or leases require a minimum limit?
• Would an umbrella policy make sense to add protection above my main limit?

Question 3: What Is Excluded?

Exclusions are where most coverage surprises come from. A CGL policy is not designed to cover every type of risk. Ask your broker to walk you through the exclusions in your wording and which other policies fill the gaps.

Common areas that usually need separate coverage include:

• Professional errors: Advice or services that cause a client financial loss may need professional liability coverage
• Vehicles: Accidents involving business vehicles are generally handled by commercial auto insurance
• Employee injuries: Workplace injuries are generally handled through WSIB for businesses required to register
• Cyber incidents: Data breaches and cyber attacks typically need cyber liability coverage
• Your own property: Damage to your own building, equipment or inventory falls under commercial property insurance

Question 4: Are My Products and Completed Work Covered?

If you sell products or complete work that customers use after you leave, ask how the policy handles claims that arise later. This matters for contractors, manufacturers, retailers and anyone whose work continues to be used after the job is done.

Question 5: Do My Contracts Require Anything Specific?

Landlords, clients and general contractors often set insurance requirements in their agreements. Before you sign, check whether they require:

• A minimum liability limit
• A certificate of insurance
• Being added as an additional insured on your policy
• Tenants’ legal liability for leased space

Share these contracts with your broker so the policy can meet the requirements before work starts.

Question 6: What Is the Deductible, and How Do Claims Work?

Ask how much you would pay before coverage applies and how to report a claim. Know who to call, what information to provide and how quickly incidents need to be reported under your policy.

Question 7: Should I Buy CGL on Its Own or as Part of a Package?

Many small businesses need more than liability coverage. Surnet’s small business insurance packages combine property and liability coverage, commercial auto insurance and umbrella insurance.

Packages are designed for service-based businesses such as accounting firms, advertising agencies, consultants, designers, real estate appraisers, tax preparers and translation services. A package can make it easier to manage coverage in one place, but compare what each option includes before you decide.

Question 8: When Should I Review My Coverage?

Your liability exposure changes as your business grows. Review your policy when you:

• Add a new service or product
• Hire employees or subcontractors
• Sign a lease or open a location
• Take on larger clients or contracts
• Enter a new industry or region

General Liability Buying Checklist

Get the Right Liability Coverage With Surnet

At Surnet, we help Ontario small business owners find general liability coverage that fits how their business really operates. Our brokers can compare options, explain limits, exclusions and contract requirements and help you decide whether stand-alone CGL or a small business package makes more sense.

Contact us to start a quote or coverage review. Final terms, eligibility and pricing depend on the insurer, the policy wording and the details of your business.