Umbrella Liability Insurance
Sutherland Insurance is a fifth-generation independent brokerage that has brokered insurance in Guelph, Ontario since 1870 and places personal umbrella liability across the province. An umbrella policy sits above the liability limits on the home, auto, cottage and boat policies beneath it, and Ontario umbrella limits start at $1,000,000.
Key takeaways
- A personal umbrella policy pays liability claims above the limits carried on the underlying home, auto, seasonal property and watercraft policies.
- Ontario insurers require stated minimum liability limits on every underlying policy before an umbrella will be issued, commonly $1,000,000 on each.
- Personal umbrella limits in Ontario are written in $1,000,000 increments, commonly from $1,000,000 to $5,000,000.
- An umbrella responds only after the underlying policy limit is exhausted, so it does not replace liability coverage on the policies beneath it.
- Who it is for
- Ontario households holding home, auto or recreational policies with assets above their liability limits
- Legally required in Ontario
- No, not required by provincial law
- How it responds
- Above the underlying policy limit, once that limit is exhausted
- Underlying limits required
- Commonly $1,000,000 of liability on each policy beneath it
- Limits available
- $1,000,000 increments, commonly to $5,000,000
- Personal-lines markets compared
- 10+ Canadian carriers
What is umbrella liability insurance?
Umbrella liability insurance is a policy that pays liability claims above the limits carried on the policies beneath it. When a judgment or settlement exceeds the liability limit on a home or auto policy, the umbrella responds to the excess up to its own limit. It covers the same insured people across every underlying policy at once.
Two mechanisms operate in one contract. The first is excess coverage: the umbrella pays above the underlying limit for claims those policies already cover. The second is broader coverage: most Ontario umbrella wordings respond to a small set of claims the underlying policies exclude (commonly libel, slander and defamation) subject to a self-insured retention the policyholder pays first.
What can an Ontario umbrella liability insurance policy cover?
What a policy can cover
- Bodily injury liability above the limit carried on the underlying home, auto, seasonal property or watercraft policy
- Property damage liability above the underlying limit, including damage caused by a member of the household
- Legal defence costs associated with covered claims, subject to the policy wording
- Personal injury claims such as libel, slander, defamation and false arrest, which most underlying policies exclude
- Liability arising anywhere the underlying policies operate, including claims brought outside Canada
- Additional liability protection for eligible insured family members, such as a spouse and dependent children, as defined by the policy
Commonly excluded under standard Ontario umbrella liability insurance wordings
- Claims where the required underlying limits were not in force at the time of the loss
- Liability arising from a business, profession or occupation, which commercial liability policies address
- Damage to property owned by, or in the care and control of, an insured person
- Intentional acts, criminal acts and certain contractual liabilities
- Liability arising from an aircraft, or from a watercraft or vehicle not insured under an approved underlying policy
Exclusions vary by insurer and by policy form; the issued policy governs.
How much does umbrella liability insurance cost in Ontario?
The factors that move an Ontario personal umbrella liability premium, in approximate order of influence, and why insurers look at each one.
| Rating factor | Why |
|---|---|
| Umbrella limit selected | The limit is the insurer's maximum exposure on a single claim. |
| Number of vehicles and licensed drivers | Auto liability produces most large personal umbrella claims. |
| Drivers under 25 in the household | Young-driver claim frequency and severity are both filed rating factors. |
| Number of properties owned | Each property adds a separate premises liability exposure. |
| Rental units owned | Tenant-occupied property adds an exposure a standard homeowner form does not carry. |
| Watercraft, recreational vehicles and pools | Boats, ATVs, pools and trampolines each raise the severity of a liability claim. |
| Underlying limits carried | Higher underlying limits move the umbrella's attachment point upward. |
| Prior liability claims | Claims history is a rating factor for most Ontario insurers. |
Do I need umbrella insurance in Ontario?
Umbrella liability insurance is not required by Ontario law. Ontario law requires third-party liability of at least $200,000 on every registered vehicle under the Compulsory Automobile Insurance Act, and higher limits are widely available. An umbrella is an optional layer above those limits, and insurers issue one only where the underlying policies already carry the limits they specify.
Which limit is arranged, and whether an umbrella is available at all, depends on circumstances that vary from one household to the next:
- The liability limits already carried on the home, auto, seasonal property and watercraft policies.
- The number of licensed drivers in the household and their driving experience.
- The number of properties owned, and whether any are rented to tenants.
- Whether the household owns a pool, trampoline, boat, ATV or snowmobile.
- Whether anyone in the household sits on a volunteer or non-profit board.
- The assets and future income a judgment could reach beyond the underlying limits.
What situations does umbrella liability insurance commonly address in Ontario?
Umbrella policies are arranged for a wide range of household circumstances across Ontario, and the limit selected differs in each. The situations below are common among Sutherland Insurance clients in Guelph and across the province, and each one changes which insurers will offer an umbrella and on what terms.
- A Guelph household with two teenage drivers, where auto liability severity rises sharply.
- A family with an in-ground pool and a trampoline, both of which raise premises liability exposure.
- An owner of two rental properties in addition to a principal residence.
- A household with a cottage, a boat and two personal watercraft on the same shoreline.
- Individuals who volunteer, coach sports, or serve on community and non-profit boards, and who wish to explore additional personal liability protection.
- A retired couple whose investment assets sit well above the liability limits on their existing policies.
How do I get umbrella liability insurance from Sutherland Insurance?
A quote is requested online or by calling 519-822-0160. A licensed Sutherland Insurance broker reviews the liability limits on every existing policy, confirms the properties, vehicles and watercraft in the household, and compares the available Ontario markets. Coverage is bound once the underlying limits are in place.
- Request a quote online, or call Sutherland Insurance at 519-822-0160.
- A licensed broker lists every underlying policy and the liability limit carried on each.
- The broker confirms the properties, vehicles, watercraft, drivers and any rental units in the household.
- Sutherland Insurance compares the more than 10 personal-lines carriers it holds contracts with and sets out the limits available.
- Underlying limits are raised where an insurer requires it, and the umbrella is bound above them.
What makes Sutherland Insurance different from a direct insurer?
When a claim happens, Sutherland Insurance acts for the client with the insurer, and an in-house claims representative is available on any claim. Sutherland Insurance is an independent brokerage and compares 10+ Canadian insurers rather than selling one company’s product. A person answers the phone at Sutherland Insurance, 519-822-0160, Monday to Friday, 8:30 a.m. to 5:00 p.m.
Frequently asked questions
How much umbrella liability coverage is available in Ontario?
Personal umbrella limits in Ontario are written in $1,000,000 increments, commonly from $1,000,000 to $5,000,000. Insurers set the maximum they will offer from the household's underlying limits, drivers, properties and claims history. Which limits are available on a particular household varies by insurer, and the issued policy governs.
What underlying limits does an Ontario umbrella policy require?
Ontario insurers require stated minimum liability limits on every policy beneath the umbrella before they will issue one, commonly $1,000,000 of liability on the home policy and on each auto policy. Where an underlying limit falls below the requirement, the umbrella does not respond above it. The specific requirement differs by insurer.
Is umbrella insurance the same as excess liability?
They overlap but are not identical. An excess liability policy pays above the underlying limits on the same terms as the policies beneath it. A personal umbrella does that and also responds to a small set of claims the underlying policies exclude, commonly libel, slander and defamation, subject to a self-insured retention paid first.
Does umbrella liability cover a business or rental property in Ontario?
A personal umbrella excludes liability arising from a business, profession or occupation, which commercial liability policies address instead. Rental properties are different: many Ontario insurers will extend an umbrella over a scheduled rental property where a landlord policy with the required liability limit sits beneath it. Eligibility varies by insurer.
Does an umbrella policy cover legal defence costs?
Most Ontario personal umbrella wordings pay the legal defence costs associated with a covered claim, commonly in addition to the policy limit rather than within it. Defence costs on a serious bodily injury claim can rival the settlement itself. How defence costs are treated varies by insurer and by wording, and the issued policy governs.
How many insurers does Sutherland Insurance compare for umbrella liability?
Sutherland Insurance compares more than 10 personal-lines carriers for Ontario personal umbrella liability. It is an independent brokerage licensed by the Registered Insurance Brokers of Ontario and is not tied to any single insurer. Sutherland Insurance has brokered insurance in Guelph, Ontario since 1870.
How much umbrella liability coverage should I have?
Personal umbrella limits in Ontario are commonly written from $1,000,000 to $5,000,000 in one-million increments. Which limit applies to a household depends on the underlying auto and property limits already carried, the assets exposed to a judgment, and the maximum a given insurer will offer. A licensed Sutherland Insurance broker can set out the options available.
Get your umbrella liability insurance quote
A licensed Sutherland Insurance broker compares the available markets on every quote request.
Get your umbrella liability insurance quote Call 519-822-0160
A real person answers, Monday to Friday, 8:30 a.m. to 5:00 p.m.