Adam Mitchell, IBAO Young Broker of the Year 2019 Ontario Trucking Insurance is a network of RIBO-licensed insurance brokers specializing in commercial trucking. All content is written and reviewed by active industry professionals with direct underwriting experience. Expert review by Adam Mitchell, IBAO Young Broker of the Year 2019 (Mitch Insurance Brokers), edited by Jennifer Oegema (Oegema, Nicholson & Associates). Our editorial standards →
Commercial auto insurance covers accidents on the road. But trucking companies face many other liability risks: injuries at your terminal, damage during loading operations, and even lawsuits over advertising. General liability insurance (also called CGL) protects your business from these non-driving risks.
What Is General Liability Insurance?
Commercial General Liability (CGL) insurance covers third-party claims for bodily injury, property damage, and personal/advertising injury that arise from your business operations— but NOT from operating vehicles (that's what auto liability is for).
General Liability Typically Covers:
- Premises Liability — Injuries on your property (office, yard, terminal)
- Operations Liability — Damage caused during business operations (loading, unloading)
- Products/Completed Operations — Claims after a job is finished
- Personal & Advertising Injury — Libel, slander, copyright infringement
- Medical Payments — Small injury claims regardless of fault
- Legal Defense Costs — Attorney fees, court costs, settlements
CGL vs. Auto Liability: Understanding the Gap
Your commercial auto policy covers accidents involving your trucks. CGL covers everything else. There's often a gap during loading/unloading—some claims fall between both policies. Make sure your broker coordinates coverage to avoid coverage disputes.
Why Do Trucking Companies Need General Liability?
Contract Requirements
Many shippers, brokers, and customers require proof of CGL before doing business with you. Without it, you lose access to valuable freight contracts.
Terminal/Yard Operations
If someone is injured at your terminal, parking yard, or office—customers, vendors, even trespassers—you could face a lawsuit. CGL covers these claims.
Loading/Unloading Gaps
Auto policies often exclude or limit coverage during loading/unloading. CGL fills this gap, covering damage you cause to customer property or injuries to dock workers.
Advertising Protection
If you advertise your trucking business, you face risks of trademark infringement, defamation, or privacy violations. CGL's advertising injury coverage protects you.
How Much Does General Liability Insurance Cost?
General liability for trucking operations typically costs $500 to $2,000 per year for standard $1M per occurrence / $2M aggregate limits.
| Operation Type | Annual Premium |
|---|---|
| Home-based Owner-Operator | $400 – $800 |
| Small Fleet (2-5 trucks) | $700 – $1,200 |
| Fleet with Terminal/Yard | $1,000 – $2,000 |
| Trucking + Warehousing | $1,500 – $3,000+ |
Factors Affecting Your Premium:
Real Claim Examples
General liability claims happen in unexpected ways. Here are three scenarios where CGL protected trucking companies:
Slip and Fall at Driver's Home Office
A shipper's representative visited an owner-operator's home office to discuss a new contract. While walking up the driveway, they slipped on ice and broke their hip. The injury required surgery and physical therapy, resulting in $45,000 in medical bills and a lost wages claim.
Forklift Damages Customer's Warehouse
While unloading cargo at a distribution center in Mississauga, a truck driver operating the customer's forklift accidentally backed into a structural column, causing $28,000 in damage to the warehouse. The auto policy didn't cover it since no vehicle was involved.
Advertising Injury Lawsuit
A small fleet owner used a competitor's name in a Google Ads campaign to bid on their keywords. The competitor sued for trademark infringement and unfair business practices, seeking $75,000 in damages. Defense costs alone exceeded $20,000.
Tips for General Liability Coverage
Bundle with Commercial Auto
Many insurers offer discounts when you bundle CGL with commercial auto. A commercial package policy often costs less than separate policies and eliminates coverage gaps.
Match Limits to Contracts
Check what limits your customers require. Many shippers want $1M/$2M CGL. Having proper limits in place means you won't lose contracts.
Add Umbrella for Major Contracts
Some major shippers require $5M or more in liability coverage. An umbrella policy can boost your CGL limits cost-effectively.
Review Loading/Unloading Coverage
Confirm how your auto and CGL policies coordinate during loading/unloading. This is a common coverage gap that should be addressed specifically.
Keep Your Premises Safe
If you have a terminal or yard, maintain it well. Clear snow, fix potholes, add lighting. Lower risk means lower premiums and fewer claims.
Get Your General Liability Insurance Quote
Free quotes from licensed Ontario brokers
Frequently Asked Questions
Do I need general liability if I only have one truck?
Even single-truck owner-operators should consider CGL. If you work from a home office, meet with clients, or do loading/unloading work, you have liability exposure that auto insurance won't cover. It's affordable protection against overlooked risks.
Does CGL cover damage to cargo?
No. General liability covers damage to third-party property, not cargo in your care, custody, or control. Cargo damage is covered under motor truck cargo insurance, which is a separate policy.
What limits should I carry?
The industry standard is $1M per occurrence with a $2M aggregate. Many contracts require these minimums. If you work with large shippers or handle high-value operations, consider higher limits or an umbrella policy.
Is workers' compensation included in CGL?
No. General liability covers injuries to third parties (customers, vendors, the public). It does NOT cover your own employees—that's what workers' compensation insurance is for. These are separate policies.
What about professional liability (errors & omissions)?
CGL covers physical damage and injury claims, not claims that you performed services incorrectly. If you provide consulting, brokerage, or logistics planning services, you may also need professional liability/E&O coverage.