Umbrella Liability Insurance

Unfortunately, lawsuits for bodily injury have risen in both volume and size in Canada over the past five years. These lawsuits can result in staggering financial consequences, with auto injury cases increasingly exceeding the $5,000,000 mark. The reality is that legal judgments are unpredictable, and defending yourself in court can easily cost millions of dollars. Given this, it's highly possible that your existing limits of liability on your home and vehicles may not be adequate if you are sued for injury to others, even in situations where you are not at fault. Given the rising risks, Umbrella Liability Insurance has become an essential safeguard, providing crucial extra coverage to protect your assets in the event of a costly lawsuit.

In Ontario, the legal system operates under a contributory negligence rule. This means that a lawyer needs only to demonstrate that you are 1% negligent in an incident to potentially result in a loss of all your assets that you have worked so hard to obtain. This includes your home, cottage, vehicles, and everything else you cherish. The stakes are incredibly high, and without proper coverage, your financial future could be in jeopardy.

To protect yourself against such risks, Personal Umbrella Liability Insurance is available as an add-on to your Home or Condominium policy. This coverage provides additional limits of liability that extend over all your assets, including your home, cottage, vehicles, motorcycles, ATVs, and snowmobiles. This extra layer of protection is crucial in today's litigious environment.

Consider the following scenarios:

• Do you travel or use your vehicle in the U.S.? Currently, $2 million CAD is equivalent to about $1.6 million USD, which may not be sufficient if a lawsuit occurs across the border.
• Do your assets exceed your current liability limits? If so, you could be at significant risk in the event of a lawsuit.
• Do you have underage or inexperienced drivers in your household? Their higher risk of accidents could lead to legal claims.
• Do you own waterfront property with watercraft or ATVs? These recreational assets are often involved in liability claims.
• Do you own a swimming pool? Pools are another common source of liability due to the potential for accidents.

Any of these scenarios could trigger a lawsuit that exhausts your current limits of liability. This is why the additional limits of protection provided by an Umbrella Liability Insurance policy are so important.

At Sutherland Insurance, we offer Umbrella liability insurance limits of protection up to $7,000,000. For less than 65 cents a day, you can ensure that all your assets are protected, giving you the peace of mind that comes with knowing you are covered against life's uncertainties.