Liability insurance tailored to your business Ontario

General liability

• Otherwise known as “commercial general liability” or “CGL,” general liability insurance in Ontario protects your business from third-party claims of bodily injury or property damage. If a customer slips and is injured in your store, or an employee accidentally damages client property, commercial liability insurance can help cover the legal defence costs, settlements, and court judgments. This protection is essential for businesses that interact with the public, such as retail, trades, and hospitality.

Professional liability

• Otherwise known as “errors and omissions” or “E&O,” professional liability insurance protects your business against financial loss caused by a professional mistake, advice, or negligence. If a designer’s plans cause project delays, or an accountant’s oversight results in a client’s filing error, professional liability insurance will cover legal fees and compensation for financial losses. It’s important to note that this coverage applies to economic damages only, not physical injuries or property damage.

If your business interacts with clients, the public, or other companies, liability insurance is crucial. Legal defense costs can reach six figures and proof of coverage is often required by most landlords, lenders, municipalities, and clients. High-risk sectors, such as construction, food and beverage, manufacturing, retail, and contracting are strongly encouraged to carry business liability insurance. For service based businesses like consultants, IT firms, financial services, and real estate professionals, professional liability insurance is the best fit to protect against errors and omissions.

Business liability insurance doesn’t cover everything. Typical exclusions include:

• Intentional or criminal acts by the business or employees.
• Employee injuries, which are usually covered by workers’ compensation (WSIB).
• Damage to your own property.
• Faulty workmanship, contract disputes, or delayed performance.
• Routine and gradual wear or deterioration.
• Pollution or environmental damage.
• Floods or earthquakes.
• Cyber risks like ransomware or phishing attacks.

Industry and risk level, business size, location, coverage limits, previous claims history, and additional coverage can affect the cost of your policy. Typical coverage for Ontario businesses ranges from $500 – $1500, with small businesses hovering around $1000 per year. Business in urban centres like Toronto or Ottawa may have higher premiums. At Westland, our experts work with multiple insurers to compare options and find the best value for your business.

Commercial auto insurance for company vehicles and employee coverage (WSIB) are legally required in Ontario. While landlords, clients, and municipalities, for rentals and leases, government contracts, and permits, usually require business liability insurance as part of a contract. It’s strongly recommended for your own financial protection and to demonstrate credibility.

No, business liability insurance in Ontario covers harm done to others or their property, not your own. For protection against windstorms, floods, or other physical losses, you need commercial property insurance. If a fire at your property causes damage to neighbouring businesses, liability insurance applies to those third party losses. Because flood risk is significant in parts of Ontario, especially in southern regions, combining liability and property coverage is strongly recommended. Westland advisors can help assess your risk factors and tailor a solution that fits your business.

No, General liability insurance offers little or no protection for cyber events. Ontario businesses are frequent targets for phishing, ransomware and other cyber threats, making dedicated cyber coverage essential.

Cyber insurance typically includes:

• Data recovery and restoration.
• Legal and regulatory costs (e.g., privacy law compliance).
• Customer notification expenses.
• Ransomware response and negotiation.

Westland’s cyber policies go further by including proactive monitoring tools to help reduce risk before an incident occurs.

Liability insurance covers your business financially if it causes harm to others, such as injury, damage to their property, or financial loss. Property insurance on the other hand, covers losses to your own assets, including buildings, inventory, and equipment. If a customer slips in your shop, business liability insurance helps cover the financial aftermath. If hail damages your warehouse roof, property insurance will cover your repair costs. Most businesses in Ontario carry both types of coverage, and Westland advisors can help bundle the right policies for maximum protection and savings.

Report the incident to your Westland advisor as soon as possible and include any supporting documentation, such as photos, videos, witness statements, and on-site notes. Don’t place blame or discuss payment with the other party. Our Ontario claims team will assist with filing paperwork and connect you with an adjuster and legal support. We are here to advocate for you throughout the process and make it as smooth, quick, and fair as possible.

The typical amount of coverage for liability limits for small to mid-sized businesses in Ontario is around $2M. Large businesses, and those in high-risk industries like construction, manufacturing, and logistics, may require $5M or carry an umbrella for higher amounts. Westland’s advisors can help assess your exposure and recommend appropriate coverage.