Commercial General Liability Insurance Ottawa

Commercial General Liability Insurance in Ottawa

Running a business in the Ottawa region comes with a unique set of risks. Whether you are a contractor renovating a home in the Glebe, a tech consultant in Kanata, or a shop owner in Manotick, you face the daily reality that a single accident could jeopardize everything you’ve built.

At Oegema, Nicholson & Associates,, we know that “risk” isn’t just an abstract concept, it’s a slippery sidewalk in February or a misstep on a job site. Serving Ottawa and the Valley since 1961, we act as your neighbours and advocates, helping you navigate the complex world of liability with trusted advice and guidance.

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What Is Commercial General Liability (CGL) Insurance?

Commercial General Liability (CGL) insurance is a foundational policy that protects your business from financial loss if you are sued for causing third-party bodily injury, property damage, or personal injury.

Think of commercial general liability insurance as your business’s shield. If you are legally liable for damages, like a customer slipping in your store or a tool falling on a client’s car, this policy covers the compensatory damages you owe. Perhaps more importantly, it covers the legal defense costs, providing you with experienced counsel to fight the lawsuit so you can keep running your business.

The "Occurrence" Basis: Long-Term Protection

Most commercial general liability policies we write are on an “occurrence” basis. This means the policy protects you based on when the injury happened, not when the claim was filed.

Why this matters: If you build a deck in 2024, but it collapses and injures someone in 2026, your 2024 policy will respond. This is vital for tradespeople, ensuring you are protected years after a job is finished.

What Does Commercial General Liability Actually Cover? (The ABCs of Liability)

A standard policy is typically split into four key coverage areas. Understanding these helps you see exactly where you are protected.

Coverage A: Bodily Injury & Property Damage

This is the most frequently used section. It covers physical injuries to people (other than your employees) and damage to property that isn’t yours. We ensure your limits are high enough to handle modern settlement costs.

Bodily Injury: A customer slips on an icy patch outside your Orleans bakery.
Property Damage: Your painting crew accidentally spills solvent on a client’s hardwood floor.

Loss of Use: If you accidentally cut a cable that knocks out a business’s internet, you could be liable for their lost revenue, not just the cable repair.

Coverage B: Personal & Advertising Injury

Liability isn’t just physical. If your marketing or communication inadvertently harms someone’s reputation, this coverage kicks in.

Libel/Slander: Accidental defamation in a social media post.
Wrongful Eviction: A landlord dispute in a rental unit.

Coverage C: Medical Payments (Goodwill Coverage)

This is a “goodwill” coverage designed to prevent lawsuits. It pays for immediate medical expenses (like ambulance or first aid) for someone injured on your premises, regardless of fault.

Real Advice Strategy: Paying for a customer’s stitches immediately can often prevent a larger negligence lawsuit down the road.

Coverage D: Tenants’ Legal Liability

Standard policies exclude damage to property you rent (because you don’t own it). Coverage D fills this gap, covering damages to your rented commercial space (e.g., a fire you accidentally start in your leased office).

Many standard policies exclude specific high-risk activities. At ONA, we review your operations line-by-line to ensure no “fine print” leaves you exposed. Unsure if you have the right coverage?

Critical Question: Does Commercial General Liability Cover My Own Business Property?

No. This is the most common misconception we see.

Commercial General Liability protects you against claims from third parties. It does not cover damage to your own store shelves, inventory, or equipment.

To protect your own assets (computers, stock, furniture), you need Commercial Property Insurance. Most small businesses bundle CGL and Property coverage together in a package to ensure both sides of the coin are covered.

The Ottawa Context: Winter, Bylaws, and "The Red Tape"

Insurance in Eastern Ontario is different because our environment and regulations are different. Here is what local business owners need to know.

The "Slip and Fall" Reality & Bill 118

In Ottawa, winter conditions make slip-and-fall claims the most common liability risk. Recent changes to the Occupiers’ Liability Act (Bill 118) have changed the game.

The 60-Day Rule: A plaintiff now has only 60 days to give written notice of a fall on private property (down from two years).
Your Responsibility: While this helps businesses defend themselves, you must keep impeccable records. If you receive a notice on day 59, you need your snow logs and camera footage from two months ago ready to go.

City of Ottawa Requirements

If you need a business license, a sidewalk patio permit, or a contract with the City, you will likely need to provide a Certificate of Insurance.

Standard Limit: The City typically requires a minimum of $2,000,000 per occurrence.
Additional Insured: You must add “The City of Ottawa” to your policy, protecting them if your operations cause a claim against them.
Cross-Liability: This clause is mandatory for municipal contracts, ensuring coverage applies separately to each insured party.

Have questions about your coverage? Our team has over 60 years of experience serving the Ottawa region. We understand the complexities of creating a comprehensive coverage plan that accounts for these unique local risks.

What Is NOT Covered?

No insurance policy covers everything. A “General” policy has specific gaps you must be aware of to avoid a denied claim.

Exclusion	What It Means	Solution
Professional Services	Claims arising from professional advice or errors (e.g., a software bug or bad consulting advice) are NOT covered.	Professional Liability (E&O) Insurance.
Automobile Liability	Accidents involving vehicles owned by the business are excluded.	Commercial Auto Policy.
Cyber Liability	Data breaches, hacks, or ransomware attacks are generally excluded.	Cyber Liability Insurance.
Your Work/Product	CGL does not warranty your work. It pays for damage caused by your work, not replacing the defective work itself.	Quality control and warranties.

Frequently Asked Questions (FAQ)

Is Commercial General Liability insurance required by law in Ontario?

Technically, no. It is not a provincial statutory requirement like Auto Insurance or WSIB coverage. However, it is commercially mandatory. You likely cannot sign a commercial lease, secure a bank loan, or sign a client contract without it. Operating without CGL exposes you to bankruptcy from a single lawsuit.

How much coverage do small businesses typically purchase?

Most Ottawa small businesses carry $2,000,000 in liability coverage. This has become the standard “minimum” for most contracts and leases. However, if you work with the federal government, host large public events, or work in high-risk trades (like roofing or welding), you may need $5,000,000 or an umbrella liability policy to meet contractual requirements.

How are premiums calculated?

Your premium is generally determined by four factors:

Revenue: Higher revenue usually implies higher exposure.
Industry: High-risk sectors (snow removal) pay more than low-risk (consultants).
Location: Postal codes with higher claim frequencies can impact rates.
Claims History: Frequency of claims often hurts your rate more than one large loss.

We Work for You, Not the Insurance Company

At Oegema, Nicholson & Associates, we are an independent brokerage. That means we don’t work for a specific insurance giant, we work for you. We shop the market (including Intact, Aviva, Gore, and others) to find the coverage that fits your specific business needs at a competitive price.

If the worst happens and you need to make a claim, you won’t be stuck talking to a stranger in a call center. You will have a dedicated local broker fighting for your interests.

Ready to protect your business with real advice?

What Our Clients Are Saying

Real stories from people who trust
Oegema, Nicholson & Associates Insurance

“One call to Oegema, Nicholson & Associates is all it took. After our basement flooded, within a day or two they had a crew cleaning everything up, taking down the drywall and itemizing everything to be cleaned, thrown out or restored. They had everything in place for us in a timely manner and were extremely patient with me as they talked me through the process and waited for me to make decisions.”

Jennifer Parks, Stittsville, Ontario

“I’ve been dealing with ONA for over 20 years with my personal insurance, as well as our commercial insurance, and I know I can rely on them for great customer service, and prompt responses. I feel confident not only referring them to my employees, but to our customers as well.”

Charlene Brunet, Butler Group of Company

“ONA helps me with my personal insurance and my business insurance. They are my one stop shop when it comes to insurance and group benefits. I know I’m covered in all areas. Great friendly service and knowledgeable staff!”

James Carriveau, President, Exact Interlock and Exact Properties

“It’s always a pleasure to deal with Oegema, Nicholson & Associates, and I can depend on them for all my insurance needs. I have been a client for several years and whether it’s regarding my personal insurance, or anything to do with our employee benefits or commercial needs, I know I’m taken care of.”

Rhonda, Capital Dodge

“I would like to thank Carol for everything she has done for me and my family over the years. It is my honest belief that we would not be in the position we are in if it was not for her guidance, expertise and honesty. We can’t begin to thank her enough.”