Liability Insurance

What Is Liability Insurance?         

Liability insurance provides financial protection if you're found legally responsible for causing harm to another person or their property. It covers costs such as legal fees, medical expenses, repair bills, and court-ordered settlements.

Liability coverage exists in many forms — from personal and home policies to commercial, umbrella, and excess liability insurance. The right combination of coverage can shield your assets and limit your out-of-pocket risk in the event of a claim or lawsuit.

Why Is Liability Insurance Important?

Accidents happen — and even unintentional actions can lead to costly legal consequences. Without adequate coverage, a lawsuit could jeopardize your savings, property, or business.

Liability insurance helps ensure that you're protected when things go wrong. It provides peace of mind, satisfies legal or contractual obligations, and helps you recover from unexpected incidents without severe financial stress.

The benefits of liability insurance for you

• Cover legal defence costs: Get financial support if you're sued or taken to court.

• Pay for damages or medical bills: Protect against injury or damage you may be responsible for.

• Protect your assets: Avoid personal financial loss from large settlements or judgments.

• Supplement other policies: Add broader or higher limits with umbrella or excess coverage.

• Maintain compliance: Meet legal or business requirements for minimum liability protection.

Explore the Different Types of Liability Insurance

The articles below break down the features, benefits, costs, and key considerations of each liability insurance option available in Canada:

Umbrella Insurance

• What Is Umbrella Insurance and How Does It Work?: Learn how this policy provides extra liability protection above your existing coverage limits.

• When Should You Consider Buying Umbrella Insurance?: Discover when higher-risk individuals or asset holders should consider this added protection.

• What Does Umbrella Insurance Cover That Other Policies Don’t?: Explore how it applies to lawsuits, defamation, and international claims.

• How Much Umbrella Coverage Do You Need?: Get guidance on calculating appropriate limits based on your risk and assets.

• Does Umbrella Insurance Cover Legal Costs and Lawsuits?: Understand how legal defence fees and court costs are typically handled.

• Can You Use Umbrella Insurance for Home, Auto, and Business Claims?: Learn how umbrella policies can bridge gaps across multiple insurance types.

Excess Liability Insurance

• What Is Excess Liability Insurance and How Is It Different from Umbrella Coverage?: Compare how this policy stacks on top of existing coverage for additional limits.

• When Do You Need Excess Liability Insurance?: Understand when your base policy limits may not be enough.

• How Does Excess Coverage Work With Your Existing Policies?: Learn how it kicks in after your primary policy limits are exhausted.

• What Are the Limits of Excess Liability Insurance?: Review how much protection this policy can offer depending on your provider.

• Who Should Consider Excess Coverage for Business or Personal Use?: See how individuals and business owners can benefit from added protection.

• Is Excess Liability Insurance Worth It for High Net Worth Individuals?: Find out how excess coverage protects valuable personal assets.

Personal Liability Insurance

• What Is Personal Liability Insurance and What Does It Cover?: Learn how this protects you from everyday risks at home or in public.

• Does Home or Tenant Insurance Include Personal Liability?: Discover how personal liability is often bundled with residential insurance policies.

• When Might Personal Liability Insurance Apply Outside the Home?: Explore how coverage extends to public incidents or off-property accidents.

• How Much Personal Liability Coverage Should You Carry?: Get tips for setting limits based on your lifestyle and exposure.

• What Happens If Someone Is Injured on Your Property?: See how a liability policy helps cover medical costs, legal action, and more.

• Can You Be Personally Sued Without Liability Coverage?: Understand the risks of being uninsured and how liability protection helps.