Personal Liability Insurance in Ontario
Whether you own a home, business, car, boat, recreational vehicle, or simply work with people, there is a constant risk of being held liable for damages. Should your actions, or inaction with regard to property, possessions, or things you do or say cause damage or harm to another individual’s person or personal items or property, you could be held liable by them.
Liability insurance is a form of general insurance that protects the policyholder against financial claims against him or her in the event that another individual sues them.
This insurance is designed to protect an individual or entity from third party claims or lawsuits. This includes a person who sues you for damages, or sues your insurance provider for damages.
What Liability Insurance Provides
Three basic functions:
First, it provides a ‘duty to defend’ the policyholder. That means that if you are sued, the insurance provider will help defend the case against the claim. When you have a liability insurance policy, you personally will not be sued unless the claim is higher than the policy payout.
Second, liability insurance provides the ‘duty to indemnify’ the claim.
Third, they provide the ‘duty to settle’ the claim in a reasonable and clear manner if deemed necessary or possible.
Tendering the Defense
When you have a liability claim filed against you, your insurance provider will take over the defense of the claim, provided the action falls within the scope of the insurance policy. In other words, the insurance company will meet all defense expenses and will also make the final decisions about whether to settle the claim or pursue a court ruling.
When an insurance provider ‘indemnifies’ the claim, it means that they will pay all settlements or court decisions for which the insured is being held liable, up to the limits of the policy itself.
Why is Liability Insurance Important?
Unfortunately, we live in a litigious society. Accidents, mistakes, slander, sleight, and many other factors leave us open to the possibility of being sued. If you are not protected, all of your personal assets and withholdings can be subject to loss during a lawsuit.
Protect yourself, your family, and your future assets by choosing the right level of liability insurance for your needs. Contact a professional at James Campbell Insurance Brokers to learn more about liability insurance.
Let James Campbell Insurance Help You With Your Insurance Today
At James Campbell, we put you first. Our clients are our top priority and the backbone behind everything we do.
We can help provide you with protection from insuring your first car, your first home or business or even giving you protection during your retirement travels. Whatever you need coverage for, we’ve got your back. We will make sure that you are ready to live a life free of stress or worry so you can focus on life’s important moments each and every day.
James Campbell Insurance Brokers have been taking care of our members for over 40 years. This is why we are able to make insurance easy by offering you the right solutions at the right times. Our solutions are tailored to fit your individual needs, no matter what they may be.
FAQs
Yes, Personal Liability Insurance typically provides protection against lawsuits arising from bodily injury or property damage that you or a covered family member are found responsible for. This coverage helps pay for legal defense costs, court judgments, and settlements up to the policy’s limits. It can also offer coverage for incidents that occur both on and off your property. However, it’s essential to review the specific terms and limits of your policy to understand the extent of your coverage and any exclusions that may apply.
While homeowners and renters insurance typically include personal liability coverage, it may not be sufficient for all situations. Personal Liability Insurance provides an extra layer of protection beyond what’s included in standard homeowners or renters’ policies. It offers broader coverage limits and can protect you against a wider range of risks, including incidents that occur away from your home. Considering the potential financial impact of a lawsuit, having additional Personal Liability Insurance can offer peace of mind and ensure adequate protection for you and your assets.
Yes, legal fees are typically covered under Personal Liability Insurance. If you’re involved in a lawsuit where you’re deemed liable for bodily injury or property damage, your policy can help cover the costs associated with legal defense. This includes expenses such as hiring a lawyer, court filing fees, expert witness fees, and other legal expenses necessary for your defense. However, it’s important to review your policy to understand the specific coverage limits and any exclusions that may apply to legal fees.
Yes, Personal Liability Insurance often provides coverage for incidents that occur outside your home. While the primary focus is typically on incidents that happen on your property, many policies also extend coverage to incidents that occur off your property. For example, if you accidentally injure someone while playing sports or cause damage to someone else’s property while on vacation, your Personal Liability Insurance may offer protection. However, coverage limits and specific circumstances may vary depending on the terms of your policy, so it’s important to review your coverage details carefully.
