Commercial General Liability
Commercial General Liability (CGL) Insurance in Alberta
The liability coverage Alberta businesses are asked for by name — by general contractors, landlords, municipalities and clients.
- Contractors and trades who need to satisfy a contract requirement
- Businesses that work at customer premises or invite customers onto their own
- Retailers, restaurants and service businesses
- Manufacturers, distributors and businesses that supply a product
Mansher Waraich · Commercial Insurance Broker
Sonic Insurance · Serving Alberta, Canada
About CGL
Commercial general liability — CGL — is the policy that responds when someone outside your business claims your operations injured them or damaged their property. It is the coverage most often named in contracts, and the one most often requested at a specific limit before work can begin.
This page explains, in general terms, what a CGL policy is built to do and what businesses should look at before relying on one. It is general information, not legal advice, and every policy is governed by its own wording.
Who this is for
- Contractors and trades who need to satisfy a contract requirement
- Businesses that work at customer premises or invite customers onto their own
- Retailers, restaurants and service businesses
- Manufacturers, distributors and businesses that supply a product
- Any Alberta business being asked for proof of liability insurance
Rather just talk it through?
Call or email directly. You will reach Mansher, not a call centre.
Mansher Waraich · Commercial Insurance Broker
Sonic Insurance · Alberta, Canada
What CGL is designed to respond to
Broadly, a CGL policy responds to third-party claims — claims made against you by someone who is not part of your business — subject to its wording, limits, conditions and exclusions.
- Bodily injury to a member of the public arising from your operations or premises
- Damage to property belonging to someone else
- Claims arising after a job is complete, where completed operations coverage applies
- Claims involving a product you manufactured, sold or distributed, where products coverage applies
- Certain personal and advertising injury allegations, as defined in the policy
- The cost of defending a covered claim, which is often the larger part of the file
How a CGL policy is usually structured
Bodily injury and property damage liability
The core of the policy: third-party injury and damage arising from your premises, operations or products, subject to the occurrence and aggregate limits.
Products and completed operations
Addresses claims arising out of your product or your finished work after it has left your control. Contractors are frequently required to carry this specifically.
Personal and advertising injury
Covers defined offences such as libel, slander and certain advertising allegations, as set out in the wording.
Tenants' legal liability
For businesses that lease space, this addresses damage to the leased premises for which the business is legally responsible.
Non-owned automobile
Considered where employees use their own vehicles for business, or where vehicles are rented.
Additional insured status
Adds a client, general contractor, landlord or owner to your policy for the work you do for them, in the manner the endorsement describes.
Umbrella or excess liability
Sits above the CGL limit when a contract asks for more than the primary policy carries.
Before you rely on a CGL certificate
- 1Check the limit per occurrence and the aggregate — contracts usually specify both
- 2Confirm completed operations is included if your work is construction or installation
- 3Read the exclusions that apply to your industry; every CGL has them
- 4Check whether the additional insured wording actually matches what the contract asks for
- 5Understand that professional advice, design and errors and omissions exposures are generally handled by a separate E&O policy, not by CGL
- 6Remember that a certificate is evidence of coverage, not the coverage itself — the policy wording governs
FAQ
Common questions
What does commercial general liability actually cover?
In general terms, third-party bodily injury and property damage arising from your business operations, premises or products, along with the cost of defending covered claims. What is and is not covered in your case is decided by the policy wording, its limits, and its exclusions — which is why it is worth reading rather than assuming.
What limit do I need?
That is usually decided for you: contracts commonly require $2 million or $5 million per occurrence, and some public-sector work asks for more. Where nothing is specified, the limit should reflect the size of the work and what a serious claim could realistically cost.
Is CGL the same thing as errors and omissions insurance?
No. CGL responds to injury and property damage. Errors and omissions (professional liability) responds to claims that your advice, design or professional service caused a financial loss. Businesses that give advice or design work usually need both.
Does CGL cover damage to my own work or property?
Generally not. CGL is third-party coverage. Your own tools, equipment, building and stock are handled by property and equipment coverages, and damage to your own work is commonly excluded or narrowly treated. This is one of the most misunderstood parts of the policy.
Can you add my client as an additional insured?
In most cases, yes, once the policy is in force. Send the contract wording along with the request — the specific endorsement and the notice-of-cancellation requirement matter as much as the name being added.
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Read moreReady to talk about commercial general liability (cgl) insurance?
Tell me what the business does and what is coming up. If a certificate or a renewal is driving the timeline, say so — it changes how I work the file.
The coverages described on this page are general information only. Availability, limits, deductibles, conditions and exclusions vary by insurer and by policy, and all coverage is subject to insurer underwriting and acceptance. Nothing here amends a policy or confirms that coverage is in place. This is not legal advice — refer to your policy wording and speak with me about your specific situation.