Time to raise personal liability limit to $2 million?

Everyone needs liability insurance.  The standard liability recommended by Canadian brokers has been $1 million for years.  But now it may be time to think about carrying extra protection.

Liability insurance is a form of insurance that will protect you against liabilities imposed by lawsuits or other third-party claims.

Personal Liability Insurance

Liability insurance covers not only your premises, but also the legal liability arising out of your personal actions that harm others.

For instance, what if you’re involved in a skiing accident? You careen down the slope, crash into someone and seriously injure them. Did you know that in Canada Medicare has the right to attempt to recover costs from you personally? Also, the injured person may sue you for lost income, and pain and suffering.

The recommended minimum level of liability insurance coverage is usually about $1 million, but in the past few years many brokers are recommending raising that to $2 million.

There are some situations in which you might want to increase your liability limit. For example, if you drive into the U.S. on a regular basis, where liability settlements are generally higher than in Canada. If you carpool to work or drive groups of children in your car to school or after-school events, you might want to increase your coverage to reflect the higher risks to which you are exposed.

 

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David Waldron
Braeside Insurance
www.braesideinsurance.com
(403) 251-7963

Tags: limits, personal liability insurance

Category: Business, Canada