The New Commercial General Liability Wordings: Insurers Financial Group

January, 2006 – The Canadian insurance marketplace is introducing a revised Commercial General Liability (CGL) policy wording for 2006 affecting new and renewing policyholders.

Because the CGL is designed primarily to protect corporate insureds from bodily injury and/or property damage liabilities arising out of their business activities, it is a commonly purchased coverage.

Many property/casualty insurers are adopting the Insurance Bureau of Canada’s advisory revised wording with little, if any, modifications. Based on the U.S. model in place for nearly 20 years, this is the first major Canadian revision since 1986. The policy had become a patchwork of new exclusions: Data, Mould, Asbestos, Sexual Abuse and Terrorism in response to many societal and legal changes in the Canadian environment.

The policy became antiquated. Coverage intent was obscure. A change was needed!

Categorically, there are 23 changes to the policy. At first this may be alarming, but a careful review is required to understand just how coverage is affected. The main purpose of the revision was to ensure clarity in coverage intent. The desired effects: to protect the long term stability of the Canadian casualty market and meet the changing needs of policyholders.

As to whether the policy wording revisions will achieve these desired effects will depend on policy interpretation and evolving client risk requirements. Time will tell.

Insurers Financial Group

The Insurers Financial Group (IFG) was founded on four core values – integrity, respect, innovation and action – and they have served us well. A large part of our success can be attributed to our continuing commitment to client satisfaction. Whether it’s as simple as insuring your home and automobile, or as complicated as specialized business insurance, or estate planning, we have the experience and expertise to customize a program to meet your needs. We’re proud to be building IFG on solid foundations. See for yourself what we have to offer. Check out our web site at