When you purchase a home insurance policy in Canada, you'll see that not only do you have insurance on your home and contents, but there's also an amount, usually $1,000,000 or $2,000,000 for liability insurance. What are you protected against? The 2 general sections are premises and personal liability, but there are other types as well.
Description of Personal Liability
Say you find yourself enjoying a recreational activity like rollerblading and you happen to bump into someone causing injury. 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. It's not just in Canada that coverage is provided, it goes for all the countries in the world. 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. This covers medical bills, lost wages, therapy and rehabilitation for the injured party. If the person responsible for the injuries must pay legal fees, the insurance policy will pay for these costs as well, this is part of the liability segment of home insurance. Contractual liability is not covered typically, and neither is damage that was done on purpose. When a claim is made, the insurance carrier has the duty (and right) to defend the insured. Policy limits are not affected by the legal fees that are incurred in court, if it doesn't exclude it, these are covered; this default rule is useful because defence costs tend to soar when cases go to trial.
What Premises Liability Includes
Accidents always happen, and they may sometimes happen in your home or on your property. 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. This is the whole purpose of this kind of insurance is in case your property is the site of an injury. 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".
You can see how important it is to carry sufficient liability coverage. When a serious injury happens on your property, it can ruin you financially, so be sure to have insurance that protects you from this, and other things like fires or other kinds of damages. Speak to your insurance agent, and make sure you have the proper protection! When you get your coverage in order, take a detailed look at what the policy includes, any exceptions and what you are insured against.
Description of Personal Liability
Say you find yourself enjoying a recreational activity like rollerblading and you happen to bump into someone causing injury. 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. It's not just in Canada that coverage is provided, it goes for all the countries in the world. 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. This covers medical bills, lost wages, therapy and rehabilitation for the injured party. If the person responsible for the injuries must pay legal fees, the insurance policy will pay for these costs as well, this is part of the liability segment of home insurance. Contractual liability is not covered typically, and neither is damage that was done on purpose. When a claim is made, the insurance carrier has the duty (and right) to defend the insured. Policy limits are not affected by the legal fees that are incurred in court, if it doesn't exclude it, these are covered; this default rule is useful because defence costs tend to soar when cases go to trial.
What Premises Liability Includes
Accidents always happen, and they may sometimes happen in your home or on your property. 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. This is the whole purpose of this kind of insurance is in case your property is the site of an injury. 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".
You can see how important it is to carry sufficient liability coverage. When a serious injury happens on your property, it can ruin you financially, so be sure to have insurance that protects you from this, and other things like fires or other kinds of damages. Speak to your insurance agent, and make sure you have the proper protection! When you get your coverage in order, take a detailed look at what the policy includes, any exceptions and what you are insured against.
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