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    The Importance of Personal Liability Insurance

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    personal liability coverage Canada

    Ensuring you have a proper personal liability insurance policy in place can end up saving you money in the long run.

    Personal liability occurs in the event that an accident, inside or outside of your home, results in bodily injury or property damage that you can be held legally responsible for. Claims may include medical bills, legal fees, and more if a guest is injured on your property. It will also provide coverage for accidental damage that you are legally responsible for on someone else’s property.

    For example, if someone were to fall down your stairs, you would be covered. You would also be covered in the event that a family member were to accidentally throw a baseball through a neighbour’s window, breaking an expensive vase.

    You may be held legally responsible for the damages in situations like the ones just mentioned. But if you have personal liability coverage, you may be able to avoid paying out of pocket for incidents like these (up to your coverage limits). That’s why personal liability insurance is an important component of your homeowner’s insurance or renter’s insurance policy.

    Though you may understand what personal liability coverage is, you may still have questions regarding its importance. This article will answer the following questions:

    • Why is insurance important and how do I get it?

    • Why do you need liability insurance?

    • What is covered and what is not covered by personal liability insurance?

    • What is a good amount of liability coverage?

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    Why is insurance important?

    Insurance is important because it provides financial security and peace of mind. In the long term or in the event that an accident happens, you’ll be thankful that you have it as it can save you from needing to pay out of pocket for legal fees and damages.

    Why do you need liability insurance?

    There are many different types of insurance. These include, but are not limited to, term life insurance (a type of life insurance), health insurance, home insurance, renter’s insurance, and auto insurance. But why do you need personal liability insurance?

    Personal liability insurance covers an individual against claims for liability arising out of bodily injury or property damage that are related to personal activities. It is essential for those living on their own or in a home with their family.

    You may be wondering, how do I get personal liability insurance? There are three different ways to get personal liability insurance:

    1. It can be packaged with your homeowner’s or renter’s insurance policy. Most insurance policies include this coverage (which may also be called “comprehensive personal liability”).

    2. It can be purchased as a stand-alone policy. This is often done by individuals who do not own or rent physical property (and who do not need homeowner’s insurance).

    3. It can be added to an existing policy, such as a personal auto or watercraft policy.

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    While personal liability insurance may be included in your existing policy, such as your homeowner’s insurance, you may choose to purchase additional personal liability coverage.

    Homeowner’s policies usually provide a maximum of $100,000 to $300,000 in personal liability coverage, but umbrella policies pick up where these limits leave off and provide comprehensive personal liability coverage of $1 million or more. Buying insurance to top up your existing policy’s coverage can save you a lot of money in the long term should an accident or event occur.

    What is covered and what is not covered by personal liability insurance?

    Although they rarely get to the lawsuit stage, many liability-related claims are quite commonplace. So, what does your personal liability insurance cover and what does it not cover?

    Some scenarios in which your personal liability would cover you include, but are not limited to:

    • Lawsuits you may face should an accident occur, such as the mail carrier slipping and falling in your driveway

    • Bodily injury to an individual, such as your dog biting a visitor in your home

    • Property damage that occurs as a result of your negligence, such as flooding due to not properly maintaining your washing machine

    Related: Home insurance claims

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    While your standard home or renter’s insurance will cover certain personal liability claims, there are some that may not be included or covered. These may include:

    • Liability resulting from an automobile accident (this will typically be covered by your auto insurance)

    • Bodily injury or property damage caused intentionally by you or a family member in your home

    • Injuries or damages sustained by you or family members in your home

    • Business activities or claims related to your profession

    Be sure to carefully review your homeowner’s or renter’s insurance policy so that you have a solid understanding of what is and is not covered by your personal liability insurance.

    What is a good amount of personal liability coverage?

    The amount of personal liability coverage that is recommended or good for you will be unique to the needs of you and your family. Insurance policies are as unique as you are and it’s important to ensure that you have the right coverage that works for you.

    Related: How Much Personal Property Insurance Do I Need?

    Contact one of our advisors at APOLLO Insurance today to get custom coverage that’s suited to you.

    Get comprehensive Tenant Insurance for what matters

    Get no-nonsense coverage that's the best value for your money. Purchase in less than a minute, receive your policy instantly, and save when you buy online.

    Originally published July 25, 2022, updated September 5, 2023

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    Get Tenant Insurance in less than a minute

    Get no-nonsense coverage that's the best value for your money. Purchase policies from your computer or phone, receive your documents instantly, and save when you buy online.

    Get Tenant Insurance in less than a minute

    Get no-nonsense coverage that's the best value for your money. Purchase policies from your computer or phone, receive your documents instantly, and save when you buy online.

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