Liability
The minimum coverage under an ICBC personal liability and property damage policy required by law is $200,000.This will provide coverage in the event the owner or driver of the insured vehicle is found to be responsible for injuries or property damage sustained in an accident.
Insurance brokers today are wise to recommend no lower than $1,000,000 coverage as most cases brought to court today start in this dollar bracket. We're even seeing a trend to encouraging the insureds to purchase higher liability coverage as the awards in court have escalated over the last 10 years.
Should you have a claim for bodily injury against another motorist who is wholly responsible for the accident, you may claim for any valid expenses directly incurred as a result of the accident.
Some examples of expenses that may be covered are ambulance service, medical, hospital, and nursing care, loss of past or future wages as well as an allowance for pain and suffering.
If you are the motorist found responsible for damages caused by that vehicle when you are operating it or when it is being operated by someone else who has your permission, the claims brought against you will be charged against your Owner's Certificate of insurance. If you are in breach of the terms or conditions of your Owner's Certificate, ICBC may seek to recover (from you) whatever money it has had to pay to others on your behalf.
In the event you are the one being sued ICBC will defend you in court as long as you are not in breach of the terms or conditions of your Owners Certificate. Under your insurance, ICBC will hire and pay for a lawyer to defend you.
Information provided here is from the ICBC bodily Injury Claims brochure.
Homeowners Liability
If you're wondering why you would need liability on your homeowners you will have a big surprise in store for you.
If cousin Bob comes for tea and you haven't quite finished clearing the snow off the walkway and your dear sweet cousin slips and falls, damaging the tendons in his leg and "can never work again". How will he be able to pay his bills and maintain his current comfort of day to day life?
The answer is your homeowners liability policy!
Cousin Bob will have to sue you in a court of law, and you will have to be found negligent by this court of law. Your homeowners insurance company will help to defend you and if and when the court grants an award to poor old Bob its your Legal Liability policy attached to your homeowners package that will pay.
Your homeowners insurance will pay as compensatory damages because of unintentional bodily injury or property damage up to the limit of insurance stated on the Coverage Summary.
Not only will your policy cover you on your property but will kick in to cover you and yours off premise as well.
You are insured for legal liability arising out of your personal actions anywhere in the world, except claims for:
- damage to property you own, use, occupy rent or lease.
- damage to property in your care, custody or control.
- damage to personal property or fixtures as a result of work done on them by you or anyone on your behalf
- damage arising from the ownership, use or operation of any motorized vehicle, trailer or watercraft except those for which coverage is provided under your policy.
- the personal actions of a named insured who does not reside on the premises described on the Coverage Summary.
So, should you be vacationing in Hawaii and as a joke you pull the chair away just as someone goes to sit down and that person hits the floor damaging themselves for life (can never work again), your homeowners liability may help you out.
or
Little Susie throws an eraser across the classroom in a moment of frustration during the math test, hitting another student resulting in that student losing their vision. The students parents may hold you responsible. You may be able to call on your Homeowners Insurance package under the liability section to help should a court of law determine negligence.
So, as you can see your homeowners insurance package can be a valuable purchase in assisting your family not just for fire, theft and vandalism coverages.
Some of the information above is provided from The Co-operators Insurance Company policy booklet.
