Let’s Talk Liability


Liability is a fancy word for being responsible for something. As adults, we find that we are responsible for lots of things, but when are we liable?

Liability is based on the definition of reasonability. What would a reasonable person do in the same situation? What would they not do? If you end up doing what a reasonable person would NOT do, then you are liable for any damages caused. This means that you are considered negligent. So, if you accidentally leave a coffee maker on, or the hotel faucet on, then you are liable for the damages. In these particular instances, if you have home or tenant insurance, you have coverage. Great, right?

When you are driving a car, if you are deemed responsible for an accident, you are liable for any vehicle damages, personal injuries, or even economic losses – eg: if a semi spills a load of grain because of you, then you are responsible for the loss of that grain and its cleanup. Even golf carts require their own liability coverage on some home insurance policies.

So, did you know that if you are involved in the community, and associations, that is more activities that you are considered responsible for? Some of these are covered by house insurance, and some are not. Some require Directors & Officers liability insurance.

If you are on a board of directors, generally, you will need Directors & Officers insurance. If you are a volunteer, you will need to talk to your broker about the particulars so you can get good advice. If you are driving in more litigious areas (ie: driving to the States), you will want to make sure you have lots of liability. If you’re involved in the community and have kids activities you’re involved in, I would also increase your liability to higher limits. You might even be surprised at how cheap it is!

Best bet? Talk to your broker, and aim for lots of liability coverage. We can help!