Liability insurance is included along with insurance on the home itself and the contents, typically somewhere between 1 and 2 million dollars on home insurance policies in Canada. What are you protected against? Well, liability falls into a few different categories, the two main ones being personal liability and premises liability.
What Personal Liability Includes
There is a chance that you could crash your bike into a jogger and it ends up resulting in painful and expensive injuries to the other party. All of the sudden the injured person hits you with a lawsuit. Personal liability insurance covers your personal actions that cause unintentional bodily injury or property damage to someone else or their property. And it covers you anywhere in the world, not just here in Canada. If you're away in another country and drop a scalding hot bowl of soup on the lap of someone else at a deli, coverage will be provided by your insurance company. Costly rehabilitation therapy and other medical bills are covered by liability insurance, as well as lost wages and some other expenses that are incurred. The liability portion of an insurance policy also covers a legal defence representative if the negligence would happen to land the at fault person in the court room. Contractual liability is not covered typically, and neither is damage that was done on purpose. Insurance companies have a duty to the client to defend the policy holder, and it is also their right to do so. The legal costs of a defence normally do not affect policy limits unless the policy expressly states otherwise; this default rule is useful because defence costs tend to soar when cases go to trial.
Premises liability
Due to the numerous accidents that are bound to occur, some will happen on your property or inside your home. Liability insurance is useful if someone happens to have a fall and is injured on your steps due to ice buildup in the winter. Having enough insurance coverage is crucial should you ever find yourself in the position of facing a lawsuit after someone gets hurt in your home or on your property. Your property could be where someone gets seriously harmed, so be protected by premises liability insurance in case of this. What if there is a pool on the property? Maybe you need more than the $1 or $2 million provided by most policies. If you have a property with a pool, or other potential hazard, you can get more coverage with something called "Umbrella liability".
Liability insurance is something that every homeowner should have, it's imperative. You need to protect yourself from financial devastation in case of someone being harmed on your property, as well as protect your home from hazards such as a fire. You should speak to your insurance representative as soon as possible, to find out if you have enough coverage. Make sure you have a close look at the fine details in your policy so you understand what you are protected against, and any exceptions that are there.
What Personal Liability Includes
There is a chance that you could crash your bike into a jogger and it ends up resulting in painful and expensive injuries to the other party. All of the sudden the injured person hits you with a lawsuit. Personal liability insurance covers your personal actions that cause unintentional bodily injury or property damage to someone else or their property. And it covers you anywhere in the world, not just here in Canada. If you're away in another country and drop a scalding hot bowl of soup on the lap of someone else at a deli, coverage will be provided by your insurance company. Costly rehabilitation therapy and other medical bills are covered by liability insurance, as well as lost wages and some other expenses that are incurred. The liability portion of an insurance policy also covers a legal defence representative if the negligence would happen to land the at fault person in the court room. Contractual liability is not covered typically, and neither is damage that was done on purpose. Insurance companies have a duty to the client to defend the policy holder, and it is also their right to do so. The legal costs of a defence normally do not affect policy limits unless the policy expressly states otherwise; this default rule is useful because defence costs tend to soar when cases go to trial.
Premises liability
Due to the numerous accidents that are bound to occur, some will happen on your property or inside your home. Liability insurance is useful if someone happens to have a fall and is injured on your steps due to ice buildup in the winter. Having enough insurance coverage is crucial should you ever find yourself in the position of facing a lawsuit after someone gets hurt in your home or on your property. Your property could be where someone gets seriously harmed, so be protected by premises liability insurance in case of this. What if there is a pool on the property? Maybe you need more than the $1 or $2 million provided by most policies. If you have a property with a pool, or other potential hazard, you can get more coverage with something called "Umbrella liability".
Liability insurance is something that every homeowner should have, it's imperative. You need to protect yourself from financial devastation in case of someone being harmed on your property, as well as protect your home from hazards such as a fire. You should speak to your insurance representative as soon as possible, to find out if you have enough coverage. Make sure you have a close look at the fine details in your policy so you understand what you are protected against, and any exceptions that are there.
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