Most people don't go about their daily lives worrying that an accident could occur, leaving them liable for causing third-party property damage or third-party bodily injury. But as careful as you may be, there's simply no way to avoid every mistake and mishap that can happen throughout the course of your life. Personal liability insurance policies give you and your family financial protection against paying out of pocket to cover litigation costs, including legal expenses, medical bills, a replacement for damaged property and monetary settlements.
Do you currently have adequate personal liability insurance? Ontario residents can contact the friendly brokers at Morison Insurance to learn more about their existing personal liability insurance coverage and ensure they have the right insurance in place for their individual insurance needs.
Personal liability insurance is a component of a standard home insurance, condo insurance or tenant insurance policy. Suppose you or a household member have legal action brought against you because a third party alleges you caused them bodily injury or damaged their property. In that case, your personal liability insurance company will provide the funds necessary to cover the cost of your legal defence and costs that arise should you be found liable. That could include medical expenses and compensation for pain and suffering in the case of bodily injury or the expense of replacing the destroyed item in the case of property damage.
In short, absolutely everyone needs personal liability insurance. Ontario residents are just as susceptible to mistakes and accidents as anyone else. Most people only have hundreds of thousands of dollars available in their budget to cover the cost of litigation without experiencing major financial setbacks. There's no sense in suffering a huge financial disruption if you're faced with unexpected expenses related to liability issues when you can protect yourself against financial losses with personal liability coverage.
Personal liability insurance covers a range of scenarios in which you may be found liable to cover costs for something that happened to another person on your property or, in some cases, wherever you happen to be at the time of the incident. In essence, you can expect your personal liability insurance coverage to apply to legal fees, court costs, medical expenses and property damage settlements resulting from third-party bodily injury or third-party property damage caused by your actions or that took place on your property. If it is necessary to make a claim, your insurance carrier will provide the funds to cover those expenses up to your policy limits. That way, you can avoid paying out of pocket for what could end up being a costly settlement.
When considering what is and is not covered by personal liability insurance, Ontario residents need to know that any third-party bodily injury or third-party property damage that occurs as a result of business activities—even if the injury or damage takes place at their residential property—will be excluded from personal liability coverage. Business-related mistakes, accidents or mishaps fall under professional liability insurance coverage or commercial general liability insurance, which is a standard part of a comprehensive business insurance policy.
For example, imagine you're a personal trainer and sometimes have clients work out in your home studio. You are left lying out if a client walks in and is injured when they trip over a yoga mat. The resulting costs would fall under commercial general liability on your business insurance policy, not your personal liability coverage on your home insurance policy. But if a friend came over for a casual visit and tripped over that same yoga mat, the resulting claim would apply to your personal liability insurance because the friend wasn't on your property for business reasons.
It's also important to understand that personal liability insurance only applies to liability situations. Suppose you or a household member accidentally injures yourself or destroys something you own. In that case, your personal liability insurance carrier will not provide funds to assist with medical bills or replacement for the damaged property because there's no element of liability when you hurt yourself or damage your own property.
Regarding personal liability insurance, Ontario residents need to know that coverage will also not apply to any incidents where you or your household member intentionally causes damage or injury. Furthermore, it does not apply to liability situations that occur while you are driving or in your vehicle, as the liability coverage portion of your auto insurance policy would handle those scenarios.
If you have comprehensive home insurance, tenant or renters insurance, or a condo insurance policy, you can count on personal liability insurance is a part of it, along with types of coverage such as property and contents coverage; personal liability insurance is automatically included with homeowners insurance or tenant insurance.
Because personal liability insurance is not a stand-alone insurance product but rather is automatically included in your homeowners insurance or tenant insurance package, the average cost is going to vary significantly based on factors such as your insurance company, the type of policy you have, various coverages and endorsements that are included, coverage limits, and so on.
Ontario brokers at Morison Insurance always recommend a minimum liability limit of $2 million for personal liability insurance. People are sometimes surprised by that amount and feel it's excessive, especially if they've never been forced to defend themselves in court before. Still, the truth is that the costs associated with a liability claim can easily exceed $1 million and continue to climb. Legal representation is very expensive, and that's before you even get to the settlement costs.
Suppose you suspect that you may have greater than average exposure to liability risks. In that case, speaking to your Morison Insurance broker about adding personal umbrella insurance to your policy is a good idea. Hence, you have extra coverage in situations where you're liable for causing third-party bodily injury or third-party property damage. If your liability costs exceed the limit of your personal liability insurance, the remainder will be covered by your umbrella insurance up to the umbrella limit. That affords you extra financial protection, so you don't have to worry about what will happen if your personal liability insurance limit is surpassed.
Yes, it does. The personal liability insurance portion of your home or tenant insurance policy applies worldwide when you accidentally cause third-party injury or property damage. Regardless of where you are at the time of the incident, if you are found to be liable, you can get financial support from your personal liability insurance provider to cover related costs such as legal fees, a replacement for damaged property, medical expenses and other settlement costs such as compensation for pain and suffering.
When they need to understand a type of insurance coverage, such as personal liability insurance, Ontario residents often find it easier to grasp when they hear real-life scenarios that describe situations that could be (and have been) claimed under personal liability insurance.
Some examples of conditions in which you would need personal liability coverage include a delivery driver slipping on your walkway due to ice buildup from a storm, spilling a cup of coffee on a guests purse during a party due to a loose carpet, or even if some local kids trespass into your backyard and proceed to get hurt jumping on your new trampoline.
These and many more situations are why personal liability coverage is essential to your policy. Speak with a Morison Insurance broker today to ensure you are properly covered.
Suppose you need to know more about personal liability insurance. In that case, Ontario brokers at Morison Insurance are happy to chat with you and discuss your options to ensure you have the right personal liability coverage for your unique lifestyle and risk exposures. The knowledgeable insurance brokers at Morison Insurance don't worry about the insurance companies; we work for you.
You can trust us to seek out the right insurance for you at the right price so you can have the complete peace of mind that comes with knowing you have the protection you need to prevent serious financial setbacks that can result from liability scenarios. Give us a call at 1-800-463-8074 to find out more about personal liability insurance and other types of personal or business insurance coverage for every aspect of your life.
This content is written by our Morison Insurance team. It is provided for general information only. Insurance needs differ from person to person, and this article is therefore not a substitute for professional advice about your individual insurance needs which can be obtained by speaking to one of our brokers.