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Accidents happen so make sure you have liability coverage

Young man looking at insurance documents

December 25, 2019. Liability insurance protects you when you have unintentionally harmed someone and are found to be legally responsible for the damages suffered by the other person. It is becoming increasingly widespread for people to claim damages they suffer through no fault of their own, and because of the rising cost of legal fees, medical treatment, and goods, just one such claim can have a financially devastating impact.

Road Accident Liability

To illustrate a Canadian example, all Canadian drivers are legally required to have liability insurance. If you happen to have an accident while driving, and you are at fault, you can held liable for the resulting vehicle damage and medical expenses of the other party.

Medical Expenses Liability

While liability coverage is not required for home owners and tenants, it is strongly recommended. If someone else is injured while on your property and you are subsequently sued, and the court finds you legally responsible, your liability insurance will kick in and pay the court-awarded damages to the other person. For example, if someone slips on your property, you may be liability for medical expenses.

Dog Bite Injury Liability

Most home and tenant insurance policies include coverage for medical expenses if your dog bites a visitor. As with all other liability claims, your insurer expects you to make a reasonable effort to be responsible and prevent such occurrences.

Lost Future Employment Earnings Liability

If someone has a huge accident in your home that prevents him or her from being able to work again, you may be liable for part of the value of that person's future lost earnings. This can be an expensive pay out, so ensure that you are covered.

Voluntary Medical Payments Liability

For small medical incidents of a visitor in your home, many home or tenant insurance policies include a small four-figure sum with which you can help the friend out for relatively small medical expenses.

Be sure to inform yourself about liability insurance to protect yourself in the future.