February 1, 2018

If I’m in an accident and I need to go court — does my insurance pay the legal fees?

What if I’m accused of something I didn’t do — am I protected by insurance?

I’m a professional — do I have liability protection?

These commonly asked questions can all be answered with ‘yes’ — if you have Umbrella Insurance. This form of insurance is not well understood by most people, but the benefits of the coverage offer great protection. Here are some some answers to frequently asked questions about Umbrella Insurance, from the team of experts at The Ostic Group.

What is Umbrella Insurance?

Umbrella Insurance is a type of liability insurance that acts as a supplement to your basic policies (such as home, auto, etc.). It provides higher liability and broader coverage for claims related to your existing coverages.

In simple terms, Umbrella Insurance provides coverage over and above your home and auto insurance liability coverage — this means that you will have additional coverage to cover the costs of unforeseen events.

For example, if you are being sued and you cannot afford the legal bills, you don’t need to declare bankruptcy or sell your home. Umbrella Insurance can provide you with greater peace of mind.

What does Umbrella Insurance cover?

Umbrella Insurance covers a wide range of situations. The main areas of coverage are:

1. Increased Liability Protection

  • Claims, lawsuits, and judgements relating to personal actions that are deemed legally liable anywhere in the world.

2. Personal Injury Protection

  • Libel, false arrest, wrongful conviction, slander, defamation of character, etc.

3. Legal Defense Costs

  • Expenses incurred by legal defense in any suit defended by your insurance provider.

Who would benefit from Umbrella Insurance coverage?

It’s hard to find a person who wouldn’t benefit from the protection that Umbrella Insurance coverages offer. However, there are some particular examples where this type of additional coverage is valuable:

  1. You have a pet.
  2. You own a pool or a cottage.
  3. You own multiple vehicles.
  4. You are a frequent traveller.
  5. You are a professional (doctor, accountant, financial advisor, etc.).
  6. You are a member of a not-for-profit board.

Read more about situations where having a personal liability Umbrella Insurance policy here.

Do I qualify for Umbrella Insurance?

Most people will qualify for Umbrella Insurance, but there are a few exceptions. You will not be eligible for Umbrella Insurance if:

  • Your name doesn’t match the name on the home or auto policy.
  • You have a home-based business.
  • You have made a liability claim in the past five years.
  • Your auto insurance doesn’t have family protection coverage.
  • You are a professional entertainer, broadcaster, TV personality, professional athlete, high-profile politician, or labour leader.
  • You have ever been sued for libel or slander.

There are many good reasons to get Umbrella Insurance coverage. Let The Ostic Group help you determine the best coverage options for you. Contact us today.

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