🛡️ Excess Third Party Liability: Why $1–5M Limits Matter 🇨🇦
In Canada, most businesses carry Commercial General Liability (CGL) insurance to protect against third-party bodily injury and property damage. But with rising legal costs and increasingly large settlements, the standard $1 million limit may no longer be enough. That’s where Excess Liability coverage comes in.
⚡ What Is Excess Liability Insurance?
Excess Liability extends the limits of your primary policy—whether that’s CGL, auto, or employer’s liability. Instead of stopping at $1 million, coverage can be increased to $2 million, $5 million, or even higher, depending on your risk profile.
📌 Why Higher Limits Matter
- Medical & Legal Costs ⚖️: Injury claims can quickly exceed $1 million once hospital care, rehabilitation, and legal fees are considered.
- Property Damage 🏢: Fires, environmental damage, or construction accidents can result in multi-million-dollar lawsuits.
- U.S. Exposures 🇺🇸: For businesses with cross-border operations, litigation costs in the U.S. are significantly higher than in Canada.
- Contractual Requirements 📑: Many clients, landlords, and project owners now require proof of $2–5 million in liability coverage.
✅ The Takeaway
Excess Liability isn’t just for large corporations—it’s becoming essential for contractors, manufacturers, professional firms, and even small and mid-sized businesses. A single major claim could surpass your base coverage, leaving your company financially exposed.
👉 Have you reviewed your liability limits recently? Increasing from $1 million to $5 million could be one of the most cost-effective risk management steps you take.
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