What is Commercial Liability Insurance?

Although every business needs it, some owners find they can’t fully answer the question: What is Commercial Liability Insurance? 

In very simple terms it’s a form of insurance that protects the policyholder from the costs of being blamed for injuries (and deaths) or property damage caused by the policyholder’s business operations, or its products. 

It also includes accidental injuries that happen on your business premises. 

It provides financial coverage for the cost of settlements and/or defending lawsuits and for rectifying faults or errors up to limits specified in the policy. 

Commercial General Liability Insurance and Business Liability Insurance are the same. 

How does Commercial General Liability Insurance Protect my Business? 


Generally, Business Liability Insurance in Ontario will protect you from liability due to: 

  • Bodily injury to customers, employees, vendors, visitors 
  • Property damage or loss 
  • Personal injury including libel or slander and violations of privacy 
  • Medical expenses from any injuries  

The Experts at Acumen can also tailor your coverage with additional endorsements: 

  • Excess liability coverage (sometimes known as umbrella coverage) to protect against claims with costs above the limits of your standard policy. 
  • Costs associated with product recalls 
  • Insurance for allegations of discrimination 
  • Mistakes (errors and omissions) in financial and other business statements 
  • Breach of contract 
  • Tenants’ legal liability if you rent or lease space 
  • Liability from use of non-owned vehicles 
  • Advertising injury liability if your claims don’t live up to their promises 


 Commercial General Liability Insurance Requirements 

We can protect any type of organization against liability risks, including manufacturers, service providers and non-profits. If you’re in a high-risk product or materials business, we can cover those operations too. 

We can also provide Commercial Liability Insurance for small businesses, including sole proprietor businesses, home-based business and even firms without specific premises such as landscapers, painters and more. 

The key requirement for your protection is that your business is compliant with all industry and government regulations. Don’t worry if you’re not sure about this. We can provide the guidance you need. 

Offences that are illegal are not covered. 

More Help for Your Business  

Protecting your business is not just about having Commercial General Liability insurance. 
For example: 

  • Risk management guidance to reduce your exposure to dangers. 
  • Best value and valuable savings through our relationship with multiple insurers in Ontario. 
  • Help and support with claims. 
  • Regular reviews to make sure your business is always properly insured. 


It’s a chilling thought, but without insurance a single liability lawsuit or claim against your organization could put you out of business overnight — after all the work you’ve put in to build it into a success.  Even the costs of defending a vexatious, untrue allegation could cost you a small fortune. 

Don’t risk that! And don’t waste a minute getting the protection you need! 

The experts at Acumen Insurance can answer your questions and provide a rapid quote for your Commercial General Liability Insurance at no cost and without any obligation whatsoever. Even if you already have coverage, a no-cost, no-obligation review could save you a significant amount of money or identify gaps in your existing commercial liability insurance. 

Business Liability Insurance is a lot less expensive than defending a claim in court. Call our brokers Today 905 574 7000 in Hamilton or (905) 282-0900 in the GTA. 

What is Product Liability?  

Product liability refers to situations where a customer purchases a product, and an issue with the product causes a bodily injury or property damage. Business owners can be found responsible for the damages if the source of the issue can be traced back to the small business. Some of the common issues customers encounter that result in product liability claims include: 

  • Products that cause bodily injury to the customer 
  • Products that cause property damage 
  • Sickness caused by food or beverages 
There are many different things that can cause a product issue, but 3 of the common reasons are:

  1. Design defect: This issue will be present in a product before it’s even made. It suggests that the design of the product is unsafe or faulty. 
  2. Manufacturing defect: something went wrong while the product was being made; Improper assembly or missing an important piece. 
  3. Marketing defect: This type of issue has nothing to do with the product itself, but rather how it was marketed to the customer. Incorrect labeling, incorrect safety warnings (or lack thereof) or insufficient instructions are common marketing defects.  
Product liability insurance will protect you against a lawsuit 

Mistakes happen. You, your employees, your equipment, or your suppliers could be the cause of mistakes that ultimately end up hurting your customers, your employees or other people who are involved with your business. Protect your business from being sued and limit your liability. The right product liability policy will help protect your business from legal costs if you’re found responsible for a product causing bodily injury or property damage to a 3rd party. 

Do You Need Product Liability Insurance? 

First, there’s a common misconception among some small business owners that they don’t need insurance, or that it’s too expensive. The truth is, whether you’re a baker selling delicious cupcakes, or a boutique selling the trendiest clothes—you should always protect yourself from the risk of product liability claims. Consequently, the minute you start selling your product you’re at risk for product liability lawsuits, which can be very expensive and time consuming. 

Any small business that produces and sells a product should have business insurance:  

  • Bakeries 
  • Clothing stores 
  • Florists 
  • Restaurants 
  • Gift shops 
  • Wholesalers 
  • Specialty food stores 
  • Coffee shops 
  • Pet stores 
  • Print and copy shops 

 Finally, keep in mind that product liability claims are not only a risk for business-to-consumer operations, but also business-to-business operations. If you produce a product that you sell to other business owners, you still need product liability insurance. Some of these businesses would include the following industries: 

  • Software developers 
  • Website creators/designers 
  • Raw material suppliers 
  • Equipment suppliers  

Use Our Resources to Get a Custom Insurance Package 

As Business insurance brokers in Hamilton. Mississauga and surrounding communities, we have access to a variety of different insurance plans. To learn more about affordable customized protection for your business call today! 

If you need more business insurance in Hamilton, Mississauga & surrounding communities, we can help you find a plan that meets your company’s needs. 
Call (905) 574-7000 or (905) 282-0900 and get the insurance you need today.