The correct term is Commercial General Liability insurance, abbreviated CGL. That is what the policy is called, what the certificate says, and what every broker and property manager uses. “General Commercial Liability” and “GCL” appear all over contractor websites. It is a harmless slip in conversation, but in an article about what to look for on a document, it suggests the writer has not handled many certificates. Look for CGL.
Contractor insurance in Ontario for renovation work centres on CGL, which protects the contractor, and by extension you, against third-party claims arising from their work:
Limits: $2 million per occurrence is the common residential standard in Ontario, and many established firms carry $5 million. Policies renew annually.
This is where the biggest misunderstanding lives. CGL does not pay to redo defective work. If a shower is installed badly, the policy will not pay to rip it out and rebuild it; that is a warranty matter. What CGL generally responds to is resulting damage to other property, such as the water that came through the bad shower and destroyed the ceiling below.
| The rule of thumb: Faulty work is on the contractor and their warranty. Damage caused by faulty work is where insurance comes in. |
Also outside CGL:
Certificates show limits, not exclusions, and this is where a policy can look adequate and turn out not to be:
| Exclusion | Why It Matters |
| Pollution and asbestos | Often excluded outright. On a pre-1990 GTA house this is the most relevant gap. |
| Mould and fungi | Commonly excluded or heavily sublimited. Relevant after any water event. |
| Water damage | Usually covered as resulting damage, but wording varies, and it is the most common renovation claim. |
| Hot work | Welding, torching and soldering may be restricted or conditional. |
| Subcontractors | Does the policy respond to subcontracted work, or only the named insured’s own staff? |
| Classification | A policy written for light handyman work may not respond to structural alterations. A contractor doing beam work needs a policy rated for it. |
You will not audit a policy yourself. You can ask the contractor’s broker, in one email, whether the policy covers subcontracted work, how asbestos and water damage are treated, and whether the classification fits your project’s scope.
If an uninsured contractor causes damage or injury, the loss does not disappear. It looks for someone to land on:
Your homeowner policy generally provides personal liability coverage as owner and occupier, which may respond to some claims. It is not designed to stand in for a contractor’s commercial coverage, and homeowners get caught two ways:
Make two calls before work starts: tell your insurer about the renovation, and ask how your policy treats liability from contractor operations on your property. Get the answer in writing.
Phoning the insurance company often goes nowhere, because insurers generally will not discuss a client’s policy with a third party. Work through the broker instead:
A proper certificate shows the contractor’s legal name as named insured, the insurer and broker, the policy number, CGL with its per-occurrence limit (commonly $2,000,000), effective and expiry dates, and, if you asked, your name as additional insured with the project address. A screenshot, summary email, photo of a printed page or a letter from the contractor saying they are insured is not acceptable. Contractors with real coverage handle this request constantly. Hesitation is information.
| Credential | What It Protects |
| CGL insurance | Property damage and third-party injury |
| WSIB clearance | Worker injury; verify it yourself at wsib.ca |
| Municipal licence, where required | For example, Toronto’s Building Renovator licence for renovation businesses |
| Trade credentials | Licensed Electrical Contractor, TSSA registration for gas, Certificate of Qualification for plumbing |
None substitutes for another. Each takes minutes to check, and together they eliminate most of what goes badly wrong.
Maple Leaf Quality Renos carries current Commercial General Liability insurance and provides the certificate to every client before construction begins, along with WSIB clearance. We manage all required permits in-house, including building, plumbing, mechanical, ESA electrical notification and TSSA gas, and back every project with a written workmanship warranty.
Contact us for a free, no-obligation consultation and a detailed written estimate.
📞 +1 (647) 496-3360
✉ contact@mapleleafqualityrenos.ca
Serving Toronto, Mississauga, Brampton, Vaughan, Markham, Richmond Hill, Scarborough, Etobicoke, Oakville, Burlington, Oshawa, Hamilton, Barrie, Kitchener and surrounding communities.