1. Why do I need a Personal Excess Policy?
$1,000,000.00 of liability insurance just doesn’t go as far as it used to, particularly if the persons involved suffer injuries that keep them from working for months, or years? The accident victims could sue you for medical bills, lost income, even pain and suffering. In this scenario, the typical liability limit is not nearly enough coverage. That’s where a Personal Excess Liability policy steps in.
Extra Liability coverage is even more necessary for people with homes and other significant assets to protect. Are you prepared to lose your home, savings or future income because of an auto accident in which you injure someone else? It happens. But it doesn't have to.
A Group Personal Excess policy provides liability protection over your current policies. There are also some additional benefits.
One of those benefits is that Group Personal Excess coverage is not individually underwritten. That means that as an active partner of BDO Canada you are automatically eligible for $5 million of excess coverage. It does not matter how many houses, cars, speeding tickets, boats or teenage drivers you have.
Another Benefit of the Personal Excess policy provided through Colley Insurance is that subject to very limited territorial restrictions the coverage provided is worldwide for both your personal liability and automobile liability. Most excess or umbrella polices only provide auto liability coverage in Canada and the United States.
2. How does a Personal Excess Policy work?
Personal Excess (sometimes known as Umbrella) insurance actually "sits" on top of or “follows” the coverage and limits of your auto or homeowners policies and other policies with liability coverage. Say you have a liability limit of $1,000,000 on your auto policy. Say also that you cause an accident in which a driver or passenger in the other car is ultimately awarded $1,450,000 for their injuries and loss of income.
Your auto policy will pay the first $1,000,000, and your Personal Excess will kick in the remaining $450,000.
Because Personal Excess Liability follows the auto or homeowner’s liability coverage and limits, most insurers offering Personal Excess policies require you to have your auto and homeowners policies with these companies as well. This is not the case with the Group Personal Excess offered through Colley Insurance. This policy will follow other insurer’s policies as long as the Underlying Coverage Requirements are met. That doesn’t mean we wouldn’t be happy to provide you with your home and auto coverage so please give us a call for a no obligation coverage comparison.
3. What are the Underlying Coverage Requirements?
#1 You must have liability limits that are a minimum of $100,000.00 for property. eg. condo, house, stationary trailer. (US funds if located in the US)
#2 The car, motorcycle or motorhome must have a minimum of $1million liability limit. (US funds if located in the US.)
#3 Watercraft less than 26 ft. (max 50hp) must have a minimum of $ 100,000.00 (US funds if located in the US.)
#4 Watercraft 26 ft. or more (over 50hp) must have a minimum of $500, 000.00 (US funds if located in the US.)