Question 1

Does my homeowner's insurance cover my home-based business?

Accepted Answer

No. Standard homeowner's and tenant's insurance policies in Ontario explicitly exclude liability arising from business activity — even if you're just consulting from a home office. If a client is injured during a visit, or your business operations cause damage, your homeowner's policy will deny the claim.

Question 2

Do I need CGL insurance if clients never visit my home?

Accepted Answer

It's still recommended. Even without in-person visits, your business can face liability claims from products you sell, services you deliver at a client's location, or advertising and marketing claims. CGL for a low-contact home business is inexpensive — often $400–$600/year — relative to the protection it provides.

Question 3

How much does CGL insurance cost for a home-based business in Ontario?

Accepted Answer

Home-based businesses typically pay the lowest CGL premiums of any category — usually $400 to $600 per year for $2 million in coverage — because the risk exposure is generally lower than a retail or public-facing location.

Question 4

I'm a consultant — do I need CGL or E&O insurance?

Accepted Answer

Likely both. CGL covers third-party bodily injury and property damage — for example, a client tripping during an in-person meeting. E&O (Errors & Omissions) covers financial loss from professional mistakes or bad advice. Many home-based consultants carry both, since they protect against different types of claims.

Question 5

Can I get CGL insurance if I run my business from a rented apartment?

Accepted Answer

Yes. CGL insurance is available whether you own or rent your home. If you rent, it's worth confirming with your landlord whether your lease has any restrictions on operating a business from the unit, separate from the insurance question.

Question 6

How fast can a home-based business get CGL coverage?

Accepted Answer

Home-based businesses are generally the fastest and simplest CGL risk to place — most policies can be issued within 1–3 business days, and sometimes same-day for straightforward, low-risk operations.

Scenario	What CGL Covers
Client visits your home office and is injured	Bodily injury and legal defense — not covered by homeowner's insurance
You sell a physical product online	Products Liability if the product causes injury or damage
You provide a mobile service at a client's location	Property damage or injury caused by your work at their site
A claim over your marketing or advertising	Personal & Advertising Injury coverage

CGL Insurance for Home-Based Businesses in Ontario

The Coverage Gap Most Home-Based Owners Don't Know About

What CGL Covers for a Home-Based Business

Consultant? You May Need CGL and E&O

CGL Insurance

E&O Insurance

Home-Based Business CGL Insurance — FAQ

Get Your Free Home-Based Business CGL Quote

Request a CGL Insurance Quote