General Third Party Liability Insurance with Rogers
Most people think of car accidents when they hear third-party liability insurance. But did you know this is an important aspect of your home and business insurance coverage, too? Third-party liability insurance can help protect you or your business in the event you’re held liable for a third-party’s bodily injury or property damage.
We’ll go into more detail about general third-party liability insurance as well as the specifics when it comes to car, home, and business insurance. You can also request a third-party liability quote online, by phone, or in-person at one of our offices.
What is Third Party Liability Insurance?
Whether you type it as third or 3rd party liability insurance, it’s the same thing: you can be held financially responsible for someone’s bodily injury or property damage. This can occur because of a car accident you’re claimed to be at fault for or due to an incident at your home or place of business. The third-party can sue you for damages – even if you’re not at fault, this can be expensive. General third-party liability insurance may cover your legal expenses, including defense costs, settlements, and awards. It may also cover medical benefits and associated costs, depending on the incident.
Who is the third party? Actually, there are a few parties that are referenced when it comes to this type of coverage:
- First Party – You, the insured.
- Second Party – Your insurance company.
- Third-Party – Any other party (person or company) involved in the incident.
Third-party liability coverage will only ever cover legal, medical or associated costs up to your policy limit and only for third parties. If you were involved in an at-fault car accident, for example, your vehicle would not be covered under this insurance (you’d need collision coverage). However, if you were not at fault, the other party’s insurance may be responsible for covering the repairs or replacement of your vehicle.
Third-Party Liability Car Insurance
This is the most well-known type of third-party liability insurance, as it is mandatory coverage for all drivers across Canada. This is what covers third-party bodily injury in the event of a motor vehicle accident.
In the event that your vehicle is damaged in a collision for which you are not at-fault, or are partially at-fault, your own insurer will pay the repair or replacement costs—not the other driver’s insurance company—under what is called direct compensation property damage (DCPD). The Government of Alberta introduced DCPD in January 2022; learn more about this coverage here. Keep in mind that if you’re partially at fault, you will only receive partial coverage. You’ll need to cover the remainder out of pocket or with your collision coverage (if you have it on your policy).
At Rogers Insurance, we always recommend more than provincial mandatory minimums as legal expenses and medical bills can quickly become astronomical and surpass the low mandatory minimum.
Home Insurance Third-Party Liability Coverage
Did you know your home insurance includes some third-party liability insurance coverage? Again, this would cover damage to third parties who are visiting your home, whether that be an injury or property damage or destruction. It may cover the cost of legal expenses, medical bills, and replacement or repair of property, up to your policy limit.
So, how would someone get injured or have their stuff damaged while at your home? Here are a few commonly covered causes of damage:
- Dog bite (if your dog’s breed is not exempt)
- Slips and falls
- Covered damage such as fire causes damage to third-party
Remember, not all scenarios are covered. For example, intentional acts will leave you on the hook for the bill. You’re also subject to your policy limits and you’re generally required to pay a deductible before your insurance kicks in.
If you need excess liability insurance (especially if you have valuable assets or own a business) or require speciality liability insurance, you could look into an umbrella liability insurance policy.
Third-Party Liability Insurance for Businesses
Businesses have a lot of options when it comes to third-party liability coverage – all of them protect for different causes of damages to third parties. Here’s a list of some of the most common:
- Commercial General Liability – If someone is injured or has their property damaged while on your business premises or as a result of your business operations.
- Professional Liability – If you offer a professional service or advice, a third party can hold you liable for financial loss.
- Product Liability – If you manufacture or sell products, a third party can hold you liable for injury or damage as a result of that product or its malfunction.
- Cyber Liability – if your business suffers a data breach or cyberattack, you could be held liable for the damage to third parties.
- Directors & Officers Liability – You can be held liable for wrongful acts that harm third parties.
Talk to an experienced liability insurance broker at Rogers Insurance for more details on these third-party liability coverages and to discuss your individual needs.
Everyone should have some level of third-party liability coverage. Otherwise, you could be on the hook for expensive lawsuits and other costs.
If you own a car, you are legally required to carry a minimum amount of third-party liability insurance by all Canadian provinces and territories. At Rogers Insurance, we strongly recommend opting for a higher limit as accident damage and injury lawsuits can quickly get very expensive.
If you’re a homeowner, most home insurance policies include some third-party liability insurance coverage.
If you’re a business owner, you should have a commercial general liability insurance policy at the very least; your other coverages will depend on the size of your business, industry, and other factors.
How much third-party liability insurance you need will depend on a variety of factors. It’s best to talk to an insurance broker directly; as they can help you determine your insurance needs.
Why Third-Party Liability Insurance Is Better with Rogers
Rogers Insurance has been a trusted insurance broker since 1977. From our roots in Alberta, we’ve grown across Canada as one of the largest independent insurance brokerages in the country. We have access to over 90 global insurance companies. What does this mean for you? It means we’re working for you – not an insurance company. It also means we can get you competitive 3rd party liability insurance quotes and offer a choice with your coverage.
Here’s what our brokers can do for you:
- Determine your third party liability insurance needs.
- Deliver competitive general liability insurance quotes.
- Act as your insurance resource and advisor.
- Advocate on your behalf if you have a claim.
Our brokers are experienced and knowledgeable. We believe in a hands-on, human approach to insurance. Experience the difference with Rogers Insurance by requesting a 3rd party liability insurance quote online, by phone, or at one of our offices today.