How CGL Insurance Protects Your Edmonton Business

How CGL Insurance Protects Your Edmonton Business

September 19, 2024 / 5 mins read

How do you protect your Edmonton small business against a lawsuit that could be financially disastrous? You need commercial general liability (CGL) insurance to protect your business from financial damages associated with third-party claims of injury or property damage.

Your Edmonton business comes into contact with third parties – customers, suppliers, and other businesses – that could result in a personal injury accident, stolen property, or damaged property at your place of business.

As a result, your business could be sued. CGL insurance specifically covers these kinds of third-party liability claims against your Edmonton business.

Your Western Financial Group business insurance broker will get you commercial coverage that protects your business from liability claims.

Western is a trusted, national insurance brokerage that has partnered with Canada’s top insurance providers to provide commercial insurance. We work with our insurance partners to find the best coverage for your needs at the best insurance rates.

We make the process easy by doing the insurance shopping for you and we give you policy coverage options that you can choose for your Edmonton small business.

What is commercial general liability (CGL) insurance?

Commercial general liability insurance provides financial coverage for claims of third-party bodily injury and property damage caused by your Edmonton business resulting from negligence or unexpected accidents.

What kind of risks does commercial general liability insurance help cover?

  • Injury to a third party who is not your employee
  • Damage to someone’s property
  • Damage to rented property
  • Medical bills if someone is injured
  • Legal costs and settlement costs of liability lawsuits filed against you
  • Liability lawsuits related to slander and libel

Who needs CGL insurance?

General commercial liability insurance for small businesses is needed if:

  • You have a business or office in direct contact with customers/clients
  • You have employees who conduct business off-site

Why is CGL insurance important for your Edmonton business?

Lawsuit protection: It protects your small business from potential lawsuits resulting from accidents, injuries, or property damage that occur on your premises or as a result of your business operations.

Financial security: In the event of a claim that is covered by your insurance policy, CGL insurance can provide the financial means to cover legal expenses, medical costs, and potential settlements, helping to protect your Edmonton business's financial stability.

Credibility: CGL insurance shows clients, suppliers, and partners that your business is prepared for any unexpected incidents.

Your peace of mind: You can operate your Edmonton business knowing that you have financial protection against potential lawsuits.

2 examples of how commercial general liability insurance protects your Edmonton business

  1. A customer slips and falls on a wet floor at your business, resulting in a concussion and a sprained her back. The client sues your business for bodily injury and wins. Your CGL coverage can help cover the legal expenses and medical expenses.
  2. You’re a painter and you splatter paint on a client’s furniture. Your CGL insurance coverage can help cover the cost of cleaning or replacing your client’s damaged furniture.

How much does general commercial liability insurance cost?

There isn’t a set price because all Edmonton businesses are not the same.

It wouldn’t be unusual for you to have $2 million in CGL coverage for your business, or more depending on its size and services.

The following factors are taken into consideration when determining the best policy options for you:

  • Your location
  • Years in operation
  • Annual revenue
  • Number of employees
  • Any past claims

What isn’t covered by commercial general liability insurance?

  • Professional services/advice
  • Intentional criminal acts
  • Patent infringement
  • Your vehicles
  • Contractual liability

What other kinds of insurance do Edmonton small businesses need?

Commercial vehicle insurance is also needed: When you or your employees are on the road for work, commercial vehicle insurance may cover your vehicles in the case of an accident. Your personal vehicle insurance will not cover you in the case of an accident if the work is related to your Edmonton small business.

Here’s an insurance checklist for Edmonton businesses:

  • Do you have the best business insurance rate that suits your work?
  • Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
  • Are you or your employees using personal vehicles for work?

What do I do if there’s a claim against my Edmonton business?

  • Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
  • Know your policy so that when you contact your broker you are familiar with what will be covered or not.
  • Document the damage. Take photos right away and write down what happened.
  • Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
  • Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
  • Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.

Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get you the right commercial property insurance at the right value for your Edmonton business. Our experts are available now to help you navigate the business insurance journey.

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