Personal umbrella liability insurance provides you with an extra layer of protection in addition to the liability coverage you have through your current home and auto insurance. It could be important coverage if you accidentally injure someone or damage their property.
Why needed?
Lawsuits are a growing trend. Many people assume that their auto or home insurance will provide all the liability protection they need. But that’s not necessarily true.
Personal umbrella liability insurance provides you with protection against these risks, which are not covered under your auto, property or other insurance, like (i) libel, slander or defamation of character, (ii) invasion of rights and privacy; (iii) false arrest. Your defense costs are covered from the first dollar on claims involving personal injury.
If you frequently visit the USA
If you regularly travel to the USA, where the claims climate is an even greater concern than in Canada, you might consider having higher liability limits. Personal umbrella liability insurance can provided this extra protection.
If you need a higher limit
If you own a car, house, pool, trampoline, pet, boat or other recreational vehicles, your chances of being legally responsible for injuring another person may be increased.
The difference between your auto and home insurance liability limits and damages sought in a claim against you could vary by hundreds of thousands, even millions of dollars. And you would be personally responsible for the difference. Additional personal liability insurance can protect your finances by providing a higher limit.
Example:
Tom was sued for a golf club mishap he had whole playing golf with his girlfriends. One of his girlfriends got hurt really bad and decided to sue Tom. Tom’s Home Owners liability policy covered his legal expenses for being sued, but it eventually ran out. He was thankful that he decided to purchase his umbrella liability insurance policy a few years ago because it kicked-in and covered the rest of his legal expenses.
References:
http://www.ama.ab.ca/insurance/personal-umbrella-liability-insurance
For more information on travel advice and insurance, visit us at www.biis.ca, email us at info@biis.ca or call 1-888-267-4461. Our staff would be pleased to answer all your inquiries.
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