Discover how useful it can be!
Third-party liability insurance is designed to protect you financially in the event of damage you may cause to others. This could include collisions, accidental injuries, property damage or water damage, for example.
Of course, to be covered, these damages should be unintentional or the result of bad luck. Let’s say you cause damage to another person or to their property, and they decide to seek compensation. This is where liability insurance comes into play.
How does liability insurance protect you?
- In the event of a lawsuit, it will help cover your legal fees and court costs. This will help you with your defense.
- If you are held liable, it will enable you to compensate the victim of the incident.
- Liability insurance can also be a lifesaver, covering shoddy workmanship. If a problem occurs during the execution of a contract, the costs will be covered by the insurer.
How to decide when you need to take out liability insurance?
Liability insurance is included in your automobile insurance and probably in your home insurance as well. The one you choose should be complementary to your other policies. We invite you to discuss this openly with your broker.
Specifically, you’ll need to declare your professional activities in order to assess the risks involved. You will also need to assess the possibility that someone may sue you, and review past events as well. You’ll need to mention whether you’ve ever been sued. These declarations will be invaluable in determining the amount of premiums you’ll have to pay.
When it comes to signing a liability insurance contract, transparency is key. The truth, the whole truth, and nothing but the truth! If your insurer discovers that you have deliberately withheld information, it could void the contract, and your insurer may refuse to defend you. Of course, they would have to provide evidence of your bad faith.
So you understand that now is not a good time to keep secrets. If your insurer were to discover that you’ve already been sued, you could kiss your insurance goodbye. If you declare it at the outset, this element of risk will be taken into consideration, without preventing you from taking out insurance. Simple and logical!
Is liability insurance valid abroad?
Going on a trip always involves some degree of risk. There are a few things you need to evaluate.
Liability insurance included in your home insurance follows you everywhere! Suppose you rent a house in another country and are responsible for water damage, your insurer will pay the compensation claimed by the landlord.
- However, liability insurance included in your car insurance is only valid in Canada.
For peace of mind, you can take out liability insurance to suit your needs and lifestyle. The right product is out there. All it takes is a meeting, a conversation, an assessment, advice and action. We’re here to help!