Umbrella Liability Insurance
Contractors Insurance is a leading commercial insurance brokerage firm based in Ontario. Thousands of contractors, tradespeople, and other professionals trust us to provide insurance solutions that secure their business’s finances.
One of the personalized insurance packages we offer is umbrella liability insurance.
Sometimes, no matter how prepared you are against the risks associated with your job, you still encounter pitfalls. Umbrella insurance can help protect you against the unavoidable and limit the damage of financial losses.
With a team of experts and extensive industry experience, you can rest assured you’re in good hands with us at Contractors Insurance.
What Is Umbrella Insurance?
Umbrella policies are extra insurance plans designed to protect you and your business if your primary policy cannot cover certain claims. This includes protection beyond the insurance in your homeowner or commercial auto insurance. If you own a boat, umbrella insurance can also cover claims not included in your watercraft insurance bundles.
Umbrella liability insurance includes coverage for the following:
Damage to Property
For contractors, the building you’re working on—including its materials and your equipment—can be damaged or vandalized. Your builder’s risk insurance can cover many of these costs, but extensive building damage might not be included in your policy. Your umbrella insurance policy can take over if this is the case.
Third-Party Damage Caused by Vehicular Accidents
Accidents happen on the road. If you or your employee is caught up in an unfortunate incident that injures someone, your auto insurance can help cover the medical costs. However, an umbrella policy can help with a payout if more is needed.
Advertising or Reputational Injury
This is one of the most common causes of lawsuits against a business. When your initial insurance policy—such as commercial general liability insurance—cannot cover the legal costs anymore, an umbrella policy can help pay for the rest.
Who Can Benefit From Umbrella Liability Insurance Coverage?
Umbrella policies provide an extra layer of security against claims that cannot be covered by the insured person’s initial policies. They are vital if:
- You own multiple assets
- You need extra coverage against legal, personal, or common property risks
- You need extra financial security to cover unforeseen circumstances, such as malicious prosecution or false arrest
We have helped countless contractors and business owners set up customized policies suited to their needs. If you have any questions about umbrella insurance bundles and plans, we’re ready to assist you.
Why Do Ontario Contractors Need This Insurance Type?
Umbrella insurance ensures the protection of your finances and secures the future of your business. This is especially important if you own a large number of assets that are not or cannot be covered in usual insurance policies.
Umbrella Insurance Claims Examples
Claims Example #1
You’re hosting a birthday party in your house and one of the guests slips and falls down the stairs. The guest sues you after ending up with a concussion and hefty medical bills. You are court-ordered to pay $1 million for damages. However, your homeowner’s liability insurance has a limit of $300,000.
Your umbrella policies can help pay the remaining $700,000 so you don’t have to pay anything out of pocket.
Claims Example #2
One of your company drivers gets into a car accident and injures someone else. The court orders you to pay $850,000 to cover damages and medical bills. However, your auto insurance coverage limit is $250,000.
A personal umbrella insurance policy can help cover the excess $600,000.
Claims Example #3
Your entire board of directors is being sued for a board-related issue that isn’t covered by your initial policies.
The costs of legal fees and false arrests are covered under umbrella insurance. However, the coverage may depend on a case-to-case basis.
Leading Provider of Umbrella Liability Insurance in Ontario
Our customer-centric approach to our clients sets us apart from other commercial insurance firms. Contractors Insurance offers you the following benefits:
Personalized Insurance Plans
Say goodbye to unnecessary riders because. At Contractors Insurance, you only pay for the coverage you need based on personalized risk assessments.
Utmost Transparency on Coverage and Limitations
We want you to know your insurance plan as well as we do. Our team of insurance experts will walk you through how your insurance bundles work, including their triggers, limits, and exclusions.
Thorough and Straightforward Insurance Education
Insurance terms can be daunting and confusing. At Contractors Insurance, we want to avoid confusing jargon as much as possible. We strive to educate our clients about insurance to ensure their packages meet their needs.
Frequently Asked Questions About Umbrella Liability Insurance
This type of policy doesn’t cover your personal injuries or damages to your own property. It also doesn’t cover the following:
- Business losses;
- Criminal acts you’ve committed;
- Written or oral contracts; and
- Communicable diseases.
Umbrella policies are different from excess liability insurance. The main difference is that excess liability coverage provides protection for the same risks under your initial policy and typically has the same exclusions. Conversely, umbrella coverage helps you pay for expenses beyond your primary policies’ existing limits or coverage.
Because accidents can happen at any time and could result in extensive damages and expensive bills, umbrella insurance can benefit everyone. Speak to one of our insurance experts to learn more about who is covered under umbrella policy insurance.
Ready to Get the Coverage You Need?
Contractors Insurance is one of the leading commercial insurance brokerage firms in the GTA. We focus on providing customizable insurance plans to our clients, many of whom are tradespeople and skilled professionals.
Contact us today for more information about our umbrella liability insurance policies or other services.
Get started with a free quote!