Why You may need personal umbrella coverage

Why You may need personal umbrella coverage


That’s exactly what personal umbrella policies offer. So why aren’t they more popular? Let’s break it down and review the importance of personal umbrella coverage.

The definition

A personal umbrella policy provides additional coverage when a client’s base liability coverage is exhausted. It covers legal fees and loss of income associated with liability claims—even for incidents that occur outside of Canada.

The challenge

Coverage that protects property is an easy concept for most clients to buy into. It’s straightforward to understand and is often mandatory. The need becomes less clear when it comes to coverage that protects against legal action.

Trends suggest that Canadians are becoming more litigious, and court cases are resulting in larger payouts. And while lawsuits don’t directly result in the loss of the ‘things and stuff’ protected by standard personal insurance policies, people could indirectly lose assets if they need to come up with the cost of an unexpected settlement.

When you consider the modern hazards that impact our safety (e.g. texting while driving), it’s hard not to appreciate how unpredictable an everyday task can be— or how far a resulting lawsuit can go.

"It won't happen to me" mentality

There’s a misconception that court battles are the stuff of TV dramas. In many people’s minds, their ‘boring lives’ are enough protection.

Here are 2 common everyday scenarios where personal umbrella coverage could protect you:

1. Posting on social media

Sites like Facebook and Twitter make it effortless for us to broadcast messages to hundreds or thousands of people. It can feel anonymous  and victimless. However, all it takes to get into legal hot water is for one person to retaliate; whether it’s the owner of a restaurant who receives a bad review, or a parent whose child’s photos are used without permission.

2. Hosting events

Small get-togethers with close friends and family seem low risk. After all, who would sue someone they know and love? However, if an accident takes place at your home and somebody you know needs to repair personal property or seek medical attention, the decision to take legal action may become more about necessity than personal retaliation.

The bottom line? The world is evolving. As sensibly as we might go about our lives, we are all subject to the unpredictability of other people’s actions.

Personal umbrella policies provide liability coverage over and above your home and auto insurance by increasing the limit of insurance, or providing coverage for speci c risks which are not covered by your home and auto policy. Give Heritage Insurance a call today to nd out how personal umbrella coverage can help protect you and your family.

Heritage Insurance | 100A Fairford Street, Moose Jaw | 306.693.7640 | nohassleinsurance.ca