Commercial General Liability (CGL) insurance can be purchased separately or as part of a business-owner’s policy (BOP). A BOP bundles property and liability insurance into one policy. The amount of coverage a business needs depends on a couple of factors:

* Perceived risk. Business owners should first consider the amount of risk associated with their business. Different businesses have different risks: For example, a business that manufactures heavy machinery is at a greater risk of being sued than a company that manufactures linens, and would therefore need more liability insurance.

* The province in which you operate. Businesses that operate in provinces with a history of awarding high damage amounts to plaintiffs typically need to carry liability insurance with higher coverage limits. An insurance broker can offer guidance in this area.