A landlord may require CGL before handing over the keys. A general contractor may require it before allowing a subcontractor on site. A client may also need proof of coverage before signing a contract.
Commercial general liability insurance (CGL) is one of the most commonly requested coverages for Alberta businesses. It responds to third-party claims involving bodily injury, property damage, or certain advertising-related harm arising from your business operations.
Whether you sell products, provide services, or welcome customers on-site, your business may face these risks — from a customer slipping on a wet floor to a subcontractor damaging a client’s property.
A standard CGL policy is built around a few core protections:
Covers medical costs and legal expenses if someone outside your business is injured due to your operations, such as a customer slipping in your store.
Covers situations where your business's operations damage someone else's property, such as a contractor accidentally damaging a client's flooring while completing a job.
Covers claims like libel, slander, or copyright infringement connected to your business's advertising or public statements, separate from physical injury or property damage.
Covers the cost of defending your business against a covered claim, even if the claim is ultimately found to be without merit.
CGL is broad, but it isn’t unlimited. A few exclusions catch business owners off guard:
CGL only covers third-party claims. Workplace injuries to your own employees are covered separately through WCB Alberta, and businesses need both types of coverage.
CGL doesn't cover physical damage to your own business property; that falls under commercial property insurance instead.
Claims related to professional advice or services, such as a consultant's mistake, generally require errors and omissions or professional liability coverage instead.
CGL is designed to respond to accidental incidents, not damages resulting from deliberate actions by the business or its employees.
Understanding Per-Occurrence and Aggregate Limits
Every CGL policy carries at least two limit figures, plus a deductible that applies before the policy responds.
The maximum amount the policy pays out for a single claim. This is typically the figure landlords, contractors, and clients reference when they specify a minimum CGL requirement.
The maximum total payout across all claims during the policy period. Once exhausted, further claims in that period aren't covered.
What This Looks Like in Practice
A common structure for Alberta small businesses pairs a $2 million per-occurrence limit with a matching or higher aggregate limit, though the right figures depend on your industry, contracts, and risk exposure. Calgary and Edmonton commercial landlords commonly require $2 million in CGL coverage as a condition of leasing space, and contractors bidding on larger projects may be asked for limits well above that.
Not every business needs the same coverage. A small retail operation may be comfortably covered at $1 million to $2 million, while contractors bidding on public infrastructure or working in oil and gas often need $5 million to $10 million given their scale of exposure. For businesses that need more without paying for a much larger standalone policy, an umbrella policy can extend existing CGL coverage at a comparatively modest additional premium.
Costs vary significantly by industry and risk exposure, but here’s a general range for Alberta businesses:
The combination of physical labour, elevated workspaces, and power tools typically drives premiums to $1,500 to $4,000 a year
Often in the range of $2,000 a year depending on industry and coverage needs.
Businesses bidding on public infrastructure or working in sectors like oil and gas may need $5 million to $10 million in combined coverage, at a correspondingly higher cost.
Roughly $450 a year for a $2 million limit on a low-risk operation.
Several factors shape what a business ends up paying for CGL coverage:
Landlords, general contractors, and clients often set minimum CGL limits as a condition of doing business, which can shape the coverage you need to carry.
Businesses involving physical labour, elevated work, or heavy equipment typically face higher premiums than office-based operations.
Higher per-occurrence and aggregate limits increase the premium accordingly.
Past liability claims against your business can increase future premiums.
Larger operations with more public or client interaction generally carry more liability exposure.
Here’s what sets an InsureMy policy apart for Alberta businesses:
Our advisors help make sure your limits satisfy what landlords, general contractors, and clients are asking for.
We understand the industries and contract norms that shape CGL requirements across the province, from construction to retail and professional services.
Our trademarked approach looks at how your liability coverage fits alongside your other business policies, not just in isolation.
You'll talk through your actual contracts and exposure with a real advisor, not a generic quote form.
Commercial general liability insurance connects with Commercial Property Insurance and Professional Liability Insurance, particularly for businesses needing broader protection beyond third-party bodily injury and property damage.
Not for most businesses, but many contractors, landlords, and clients require proof of it as a condition of doing business, and it’s considered essential coverage for almost any business serving the public.
A per-occurrence limit caps what the policy pays for a single claim, while an aggregate limit caps the total payout across all claims during the policy period.
No. Employee workplace injuries are covered through WCB Alberta, not CGL, which only responds to third-party claims.
It depends on your industry and contracts. A common baseline for Alberta small businesses is $2 million, though landlords, contractors, and government clients may require higher limits.
No. Errors related to professional services or advice generally require errors and omissions or professional liability insurance instead of CGL.
For your commercial general liability coverage, and talk to an InsureMy advisor about the limits your contracts require.
