Why Do I Need a Personal Excess Liability Policy?
The more your assets grow, the higher your liability risks are. No matter how well you’ve covered your bases, sometimes things go wrong. A car accident. A guest who slips and falls on your property. A lawsuit. If you don’t have the right coverage, an unfortunate situation can compromise your financial security and put your personal assets at risk.
An excess policy responds when the underlying liability limits of your other policies, such as home and auto, aren’t enough to cover the unexpected costs of a lawsuit or accident.
It is important to note that most Canadian insurance policies carry on average $1,000,000 of liability coverage. This limit can quickly become quickly exhausted and is very frequently limited to North America. The Group Personal Excess policy provided by Chubb Insurance provides up to $5M of worldwide coverage which extends to all dependent member of your house hold and also provides coverage for foreign owned assets.*
* Territorial restrictions apply: Sudan, North Korea, Iran, Cuba, Syria
How Does a Personal Excess Policy Work?
Personal Excess policies provide an additional layer of liability protection for: personal injury or property damage; lawsuits involving libel, slander or defamation of character; and accidents with uninsured and underinsured motorists. Coverage is triggered in the event your underlying coverage is not sufficient.
Consider the following:
It's raining, and your car skids unexpectedly. The passenger in the car you hit suffers a neck injury and lost earnings are significant.
You volunteer on the board of directors for your condominium association. The board installs a playground with a faulty swing and a fellow association member's child is injured.
Example: You are involved in an accident and ultimately sued by the third party who is awarded $1,450,000 for their injuries. Your underlying insurance policy, (if purchased with $1M liability) will cover the first $1,000,000 of damages. Your Personal Excess policy will then provide coverage for the remaining $450,000.
Advantages of the Chubb Policy
$5M of additional liability coverage provided at a reduced cost
Defence costs for a lawsuit, even if it is groundless are not capped and as such, sit outside of the liability limit
Coverage extends to all dependent members of your household
Coverage is worldwide, extends to foreign assets, and is especially applicable if you travel*
Provides worldwide rental car coverage up to 60 days - you can rent a car anywhere in the world and have coverage for personal injury and property damage
Provides uninsured and underinsured motorist protection - for you and your family against those carrying insufficient limits. Limitations apply to Manitoba & Quebec
Provides personal injury and property damage coverage resulting from your having a non-compensated seat on a not-for-profit board
It is not a requirement for your underlying insurance to be placed with Chubb in order to take advantage of this coverage. The Chubb product will work in tandem with your current underlying coverage and if needed, in many cases will help to fill any current gaps in coverage.
If you would like to receive complimentary due diligence on your existing insurance policies/or would like to explore underlying options available through Chubb, Colley Insurance would be happy to assist.
What are the underlying coverage requirements?
Personal Liability (Homeowners) for bodily injury and property damage in the minimum amount of $100,000 per each occurrence.
Registered and unregistered vehicles in the minimum amount of $1,000,000/$1,000,000 bodily injury and $1,000,000 property damage; or $1,000,000 single limit per each occurrence. Registered vehicles include motorcycles and motorhomes.
Uninsured and underinsured motorist protection in the minimum amounts of $1,000,000 per each occurrence. This requirement does not apply to the provinces of Quebec or Manitoba.
Watercraft less than 8 metres (26feet) and 50 engine rated horsepower or less for bodily injury and property damage in the minimum amount of $100,000 per each occurrence.
Watercraft 8 metres (26 feet) or longer or more than 50 engine rate horsepower for bodily injury and property damage in the minimum amount of $500,000 per each occurrence.
*The above liability limits must be in USD if the asset is located in the United States.
Are My Professional and Business Activities Included?
Professional activities are not covered, but incidental business/farm activities and property are, subject to the limitations stated in the policy under "business pursuits". Please contact Colley Insurance to discuss further.
Who is a Group Member?
Group members are all active partners of BDO Canada
Who is Considered a Covered Person?
The term "covered person" includes:
You (all active Partners of BDO Canada) or a family member;
Any person using a vehicle or watercraft covered under this policy with permission from you or a family member with respect to their legal responsibility arising out of its use
Any person or organization with respect to their legal responsibility for covered acts of omissions of you or a family member; or
Any combination of the above
How Much Coverage Do I Have?
Each participant is covered for a $5 million limit of liability, and there is no annual aggregate on the policy.
What if I Have Personal Properties or Assets Owned by a Holding Company or Trust?
The Chubb Group Personal Excess policy can extend to provide coverage over "personal" assets held in a trust or holding company, as long as the requisite underlying limits of coverage are met and that the underlying policy lists either your or your spouse's name in some capacity on the policy.
Example: The Brown Family Trust a/o Ken Brown or 123456 Ontario Inc.
a/o Ken Brown should be shown at the top of the policy under the named insured.
Do I Still Need to Buy Rental Car Insurance?
Your Chubb Group personal Excess Liability coverage provides worldwide automobile rental coverage (subject to a few territorial restrictions), for up to 60 days. You can rent a car while on vacation and have coverage for personal injury and property damage without buying the additional insurance.
What About That Moped/Motorcycle I Want to Rent?
For a moped or motorcycle, you have worldwide rental coverage however; this is limited to 30 days vs. 60 days for a private passenger vehicle.
What is Uninsured and Underinsured Motorist Protection and Why is it Important?
Uninsured and underinsured motorist protection is a coverage built into Chubb's Group Personal Excess policy that protects you against drivers who carry either no insurance or inadequate limits of insurance.
This is important because it enables you to protect your lifestyle and future income in the event you are involved in a not at fault accident where the third party is unable to cover the cost of your damages.
This coverage extends worldwide, and is especially relevant in places with low minimum liability insurance requirements.
Note: Government auto insurance is done differently in Manitoba and Quebec, so uninusred and underinsured motorist claims in those provinces are not covered under the Personal Excess Liability Policy.
Are Boats Covered?
Boats you own are covered, subject to the underlying coverage requirements.
Am I Covered while Racing any Cars, Boats or Watercraft?
No, you are not covered while racing.
Do I Have Coverage for Motorized Vehicles that are Not Licensed for the Road, Such as a Golf cart, Dirt Bike, ATV or Moped?
If you have a policy that provides primary coverage for these types of vehicles, the Group Personal Excess Liability Policy will provide coverage on a follow-form basis, subject to the underlying coverage requirements. If you do not have primary coverage, talk to us about how it can be added to your homeowner's policy or purchased separately.
Is There Anywhere in the world that I am Not Covered?
Yes. At the time of writing this (November 1, 2017) you would not be covered in Iran, North Korea, Syria, Cuba and Sudan. Please check with us for any changes to these territorial restrictions.
What do I do if there is an accident?
Please contact Colley Insurance at 1-888-824-0445 as soon as possible, so we can help you through the claim process.