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Umbrella Policies

Posted By on 06-05-2021
Umbrella Policies

Just like an umbrella gives you added coverage to keep you dry in a rainstorm, an umbrella insurance policy gives you extra coverage that goes above and beyond the normal limits of an auto or home policy, protecting you, your family, and your business.

An umbrella insurance policy is extra liability insurance coverage that goes beyond the limits of the insureds’ home, auto or watercraft insurance, adding an extra layer of coverage for those with a higher level of risk exposure.

There’s a very good chance that most people will fit into one of the following categories of having children, partaking in hobbies, travelling, using social media, or perhaps owning rental property, or being a volunteer with some organisation or charity group. Sound like you or your family members?

Think about social media for a second. Who doesn’t participate in this activity in some form or another, even with something as innocuous as Facebook or TikTok? All fun and games but when you consider the hundreds or thousands of people that may see a post where you may commit libel, slander or breach of privacy, even if it was inadvertently, you’ll see the exposure to a lot of risk. A defamatory review of a business or service, or a photo “published” of someone that doesn’t want their photo shown, are certainly quite possible, even if innocently done. Think of someone who owns their own business or has built up their name in the community, then think of what would happen should a social media campaign against them cause a loss in their community standing or affect their business and you can see why there may be repercussions in the form of a lawsuit against you should you or someone in your family been involved in those social media posts.  And when we say “someone in your family”, we do mean children. You know they’re on social media a lot, especially teens, and things can be said and posted that you may not even be aware of or have direct control over yet you are responsible for your dependents and, as the parent, could be held responsible for any sort of damaging action.

And let’s face it, high worth individuals are often the target of those seeking to sue for damages. Whether it’s you, your family, or your business, the added protection of an umbrella policy can cover law suits for libel, slander, mental anguish, character defamation and even false arrest.  We also travel a lot more in this modern age and the beauty of this added protection is that it covers you worldwide.

Some of the things to consider whan deciding if you need an umbreall policy

Should there be an unfortunate event for which you are sued, the coverage from your basic insurance may not be enough, as many insurers have limits on those amounts. Even those that do offer higher limits could charge additional premiums that would be far more expensive that the basic cost of an umbrella policy that can reach up to $5 million in added liability coverage.

Canadians are becoming more and more litigious and sometimes basic coverage just isn’t enough, which is why getting an umbrella policy should be an easy decision. It’s often more affordable than increasing limits on each policy base and it extends worldwide, deals with some of the dangers and risks associated with our electronically connected world, and will give you some added peace of mind.

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