Umbrella Liability Insurance is a policy that provides extra liability insurance over a primary policy. Insurance companies in Canada are seeing an increase in the amount of judgments being awarded against consumers.
Consumers who accidentally injure someone or damage third party property are especially at risk. A problem arises for consumers when these judgments are higher than their insurance policies provide coverage for. It is not uncommon for today’s courts to award damages that exceed consumer’s policy limits.
What types of claims have caused a policy to exhaust its liability limits?
• Someone slips and falls in a pool
• Drowning in a pool
• A young person is seriously injured or disabled from a trampoline accident
• A driver in your household seriously injures or disables a third party in a auto accident
Why is it important to have a umbrella liability policy?
It provides excess liability coverage when your primary policy liability limit is exhausted. An umbrella policy is an extra layer of security. In the event that a judgment is awarded against you causing your primary liability policy to be exhausted, the umbrella policy helps to provide extra coverage.
It provides protection against some claims that are not covered by the underlying policy. An umbrella policy provides extra coverage for additional risks which may not be included in your primary policy. For example, slander, libel, defamation of character, invasion of rights of privacy, and false arrest.
It is important to consider an Umbrella policy to increase and complement the existing liability insurance you have for your vehicles, home, watercraft, commercial automobile, commercial business etc. Extra Liability limits can be purchased in increments of $1,000,000 at an affordable cost.
Please call us at 1-877-941-2266 for a quote and any questions you have. A broker can assist you in attaining a quote for Umbrella Liability Insurance at an affordable cost.
