Common law, which applies in all provinces in Canada except Quebec (where they operate under Civil Law), has established that business owners owe a duty of care to the public regardless of the type of business they operate. Unfortunately, accidents happen, and injured people or parties may allege the following three things:

1. A duty of care was owed
2. That duty of care was breached
3. Damages and/or injuries were incurred

When the above conditions are met, people, parties, and/or their lawyers will often allege that a business has been negligent and is responsible for compensating them for their damages. 

Demands for compensation can come in written and/or verbal format and can be made by the injured party directly or by a lawyer representing the injured. This is commonly known as personal injury law, and in this area of law, lawyers will typically work on a “contingent” basis, which means the injured party pays nothing upfront. The lawyer only gets paid if they receive an award or settlement from the organization they allege is at fault.

Commercial General liability (CGL) insurance is essential for any business, from small startups to large corporations operating in various industries. This insurance coverage protects against financial losses from third-party claims of advertising injury, bodily injury, and property damage. 

Here are some signs you need CGL insurance:

• Your business has a physical location (including a home office)
• You or your employees interact with clients or customers face-to-face.
• Your company markets its products or services, exposing you to potential claims of false advertising or copyright infringement.
• You participate in trade shows or events where your business could accidentally cause harm to third parties.
• Your business operations involve manufacturing, distributing, or selling products that could harm users.

CGL Insurance coverage can protect businesses against common liabilities they may face during operations, including:

• Bodily Injury To Third Parties: This covers medical and legal expenses resulting from bodily harm, sickness, or disease, including death, from your business operations.
  • For example, a customer slips in your store and breaks their hip.
• Property Damage To Third Parties: Damage caused to property that isn’t yours.
  • For example, a contractor accidentally damages the building next to the one he is working on.
• Products Liability: Liability for bodily injury or property damage incurred by a merchant or manufacturer due to a defect in the product sold or manufactured.
  • For example, a customer becomes sick after eating at a restaurant.
• Completed Operations: Work of the insured that has been completed as called for in a contract, work completed at a single job site under a contract involving multiple job sites, or work that has been put to its intended use.
  • For example, a plumber installs a new toilet, and it begins to leak and damages the contents of the room below.
• Tenant Legal Liability: Tenant accepts responsibility for damage they may cause to the building they rent or lease from a landlord.