Are Your Liability Limits High Enough?
At Merit Insurance, we believe in staying ahead of changes that could impact your coverage, and right now, personal liability limits are a top concern.
Following a recent seminar on Errors and Omissions, a critical issue was raised: Are the liability limits we typically recommend, such as $2,000,000, still enough? Recent changes in Marine Liability legislation make this question more important than ever. But the conversation doesn’t stop at boat insurance. These liability concerns extend across your coverage, including auto insurance and home policies that may include watercraft.
Why Liability Coverage Matters More Than Ever
Liability insurance protects you if you’re found legally responsible for injury or damage to another person or their property. But the costs can skyrocket when serious accidents happen, especially across the border.
A U.S. auto accident, for example, could lead to settlements or court judgments in the tens of millions. One claims specialist recently revealed he’s currently handling two open claims from motor vehicle accidents in the U.S., with liability exposure of $15,000,000 each.
Canadian policies are paid in Canadian dollars, but legal judgments in the U.S. are in U.S. dollars. This currency gap alone can leave Canadian drivers underinsured without realizing it.
Boating Clients: Don’t Miss This Update
Earlier this year, we shared an update about Marine Liability changes with our standalone boat insurance clients. However, some of our clients have watercraft listed under their home policies and may not have received this information.
If that’s you, it’s essential to understand that marine liability limits have changed, and your current coverage may no longer meet the new standards or your actual risk level.
What You Can Do
We strongly recommend reviewing all your liability coverage, whether on your home, auto, or boat insurance. In many cases, increasing your liability limits is a cost-effective way to better protect yourself. Another option worth exploring is an Umbrella Liability Policy, which offers broader coverage and higher limits over your existing policies.
This isn’t about fear, it’s about being informed, proactive, and properly protected.
Insurance isn’t just paperwork. It’s about protecting the life you’ve built. If you’re unsure whether your current limits are enough or want to understand more about how an umbrella policy works, we’re here to help.
Contact your Merit Insurance advisor today to book a policy review. We’ll help you assess your exposure and recommend coverage that fits your lifestyle.
