Business insurance
How Small Businesses Get Commercial Liability Insurance in Ontario
Short answer
Ontario small businesses usually obtain commercial general liability coverage through a licensed broker who submits the business description, revenue, payroll and operations to commercial insurers and specialty markets. Underwriters price the exposure and issue quotes, commonly at $1 million, $2 million or $5 million limits. Landlords, clients and public bodies frequently set the required limit contractually before work can begin.
Written by BrokerUnion Insurance Editorial Team · Reviewed by Muqit Aziz, Principal Broker, BrokerUnion Insurance Inc. (RIBO licensed) · Last reviewed
Key takeaways
- Commercial general liability (CGL) responds to third-party bodily injury and property damage arising from your operations, premises and products.
- CGL is not legally mandated for most Ontario businesses, but contracts, leases and licensing bodies routinely require it.
- Professional services generally need errors and omissions coverage in addition to CGL, because CGL excludes professional advice.
- Business use of a vehicle needs commercial auto, and employees generally bring WSIB obligations, neither is covered by CGL.
- Accurate operations and revenue descriptions matter more than any other input to a commercial quote.
What a CGL policy typically responds to
- A customer or member of the public injured at your premises or job site
- Damage you cause to a third party's property while working
- Products and completed operations liability after the work is delivered
- Tenant's legal liability for damage to premises you lease
- Personal and advertising injury, subject to policy wording
- Defence costs, which are generally handled by the insurer
What CGL does not cover
- Professional advice, design or service errors, which need errors and omissions (E&O) coverage
- Your own property and equipment, which need commercial property or equipment coverage
- Cyber incidents and privacy breach response, which need cyber liability
- Vehicles used for business, which need commercial auto
- Employee workplace injuries, which fall to WSIB coverage where required
- Directors' and officers' exposures, which need a separate D&O policy
What underwriters will ask you
- A plain description of exactly what the business does and for whom
- Annual revenue, and the split between Ontario, rest of Canada and United States work
- Number of employees, subcontractors and whether subcontractors carry their own coverage
- Whether you work at heights, with hot work, with food, or with vulnerable persons
- Loss history, usually the last five years
- Contract requirements, including any additional insured wording you must satisfy
The placement process, step by step
- Gather your operations description, revenue, payroll and loss history
- A broker markets the risk to commercial insurers and, where needed, specialty or MGA markets
- Underwriters return quotes with limits, deductibles, endorsements and exclusions
- You compare on limit and exclusions first, price second
- Coverage is bound and a certificate of insurance is issued for your landlord or client
Common Ontario small business coverages and what they respond to
| Coverage | Responds to | Typically needed by |
|---|---|---|
| Commercial general liability | Third-party injury and property damage | Almost every business with premises, clients or job sites |
| Errors and omissions (E&O) | Financial loss from professional services or advice | Consultants, brokers, IT, design, regulated professions |
| Commercial property | Your building, contents, stock and equipment | Anyone with a location, tools or inventory |
| Cyber liability | Breach response, extortion, business interruption from a cyber event | Any business holding customer data or taking payments |
| Commercial auto | Vehicles used for business purposes | Trades, delivery, mobile services |
| Business interruption | Lost income after an insured physical loss | Businesses that cannot operate from an alternate site |
What to consider
- Check the exact limit and additional insured wording your contract requires before buying, changing it later can be slower than getting it right initially.
- Under-reporting revenue or payroll can create a coverage dispute at claim time.
- Availability, wording and pricing vary by industry, insurer and jurisdiction. Policy wording governs.
Authoritative sources
Where this information comes from
- Business insurance basics — Insurance Bureau of Canada. Reviewed August 7, 2026.
- Who needs WSIB coverage — Workplace Safety and Insurance Board (WSIB). Reviewed August 7, 2026.
- Starting a business in Ontario — Government of Ontario. Reviewed August 7, 2026.
- Privacy breaches at your business — Office of the Privacy Commissioner of Canada. Reviewed August 7, 2026.
This page is educational and general in nature. Coverage, eligibility and pricing vary by insurer and by policy. The policy wording governs in all cases.
How BrokerUnion helps
- Commercial submissions are marketed to standard commercial insurers and, where the risk requires it, to specialty and MGA markets.
- Your broker reads the insurance clause in your lease or client contract and confirms the policy actually satisfies it.
- Certificates of insurance are issued for landlords, clients and public bodies as your contracts require.
- You keep one licensed commercial broker through renewals, mid-term changes and claims.
FAQ
Frequently asked questions
Is commercial liability insurance mandatory in Ontario?
It is not generally required by provincial law, but leases, client contracts, municipal licensing and many regulated professions require it, which makes it effectively mandatory for most operating businesses.
What limit should an Ontario small business carry?
$2 million is the most commonly requested CGL limit, with $5 million requested for construction, public-sector and larger commercial contracts. The controlling number is whatever your contracts specify.
Can a sole proprietor or home-based business get CGL?
Yes. Home-based and sole-proprietor operations are routinely written, though the home policy itself generally excludes business exposures, so a separate commercial policy is needed.
How long does it take to get commercial insurance in Ontario?
Straightforward risks can often be quoted within one business day. Specialty, construction and higher-hazard operations take longer because they are marketed to underwriters individually.