Liability Insurance In Ontario: Definitions and Terms

The coverage needed to protect people/organizations can vary depending on their business and social conduct. There are many coverage options that offer protection for each group of people/organization. Different organizations/people require different amounts/types of liability coverage. To get more details about liability insurance you may check it here.

Classification of Liability

Personal vs. Commercial Liability: While personal liability insurance covers individuals, commercial liability coverage covers businesses. Personal auto liability insurance is required for a 4-door sedan car. A commercial auto policy may be required if the vehicle is being used for delivery.

Personal Liability Protection is usually included in personal policies like Personal Auto Policies (), Homeowners Insurance Policies, and Boat Policies. These coverages cover bodily injury, property damage, and legal defense for claims against the Insured.

Commercial/ Business Liability Protection: This covers individuals and businesses in relation to their business activities.

Premises liability applies to anyone who, other than the insured, or their employees, sues the company for injuries sustained on business premises. The injured party must have suffered an injury at your premises before they can file a claim for damages.

Product Liability covers business-completed products and services. Similar coverage is offered under the term "completed operations" which covers multiple contractors who cause damage to others during their service rendering. Special professional liability coverage is available for professionals such as lawyers, agents, brokers in real estate, and doctors.