For most of us with regular jobs we typically get our liability insurance through our home and auto policies. This makes life simple for us, some might even say easy-peasy-lemon-squeezy. The question is do you have the right limits?
For automobile liability insurance the minimum in Ontario is $200,000, which doesn’t cover much these days. Just before the holidays I met with a Colleague that was in an accident in which he and the other motorist appeared uninjured. Unfortunately, the other motorist decided to be “opportunistic”. Imagine his shock when his insurance company called him and said he was being sued, and it was possible the claim may go over his $1,000,000 limit. And he should seek legal Counsel. Ouch.
Then there was a guy at a friends place who slipped on water and sued his friend. Or the countless accidents that happen with kids and swimming pools.
So what’s the right number? Good question.
A few things to think about, do a lot of driving – the more time you spend on the road increases your risk. Do you head up north in the winter on snowy and icy roads? Driving a large vehicle may cause significant injury if you hit someone.
How about your home? Pools bring risks and having high income earners over for dinner/social gatherings are things to think about.
The potential financial losses of the risks is tricky to estimate, but imagine if you had someone over for dinner that earned $200,000 per year and could not work for 15 years as a result of a slip and fall at your home – that’s $3,000,000.
My recommendation? Just don’t invite the Queen or Barrack Obama over for dinner. That could be an expensive risk.