Getting home or car insurance isn't just about protecting your things. One of the most important, but sometimes misunderstood, coverages is liability insurance.

This coverage steps in when you accidentally cause harm to someone else – whether it's bodily injury or physical damages. It helps keep these accidents from turning into huge financial burdens for you.

In this article, we'll break down how liability insurance works, what it covers, and why it's a must-have part of any good insurance policy.

What is liability?

Liability (or civil liability) means you're legally obligated to pay for damages you cause to someone else, whether it's to their person or their property. It's based on a simple idea: if your actions, your carelessness, or the actions of someone or something you're responsible for cause harm, you must deal with the consequences.

Liability insurance is usually included in car and home insurance policies. It covers the costs of physical damage or bodily injury you might accidentally cause to another person. For example:

• Your dog bites a neighbour.
• You accidentally break someone's property.
• You injure another driver in a car accident.

Who needs this policy?

Anyone who owns a vehicle in Quebec is required to have liability insurance. Also, if you're a renter or homeowner, liability coverage is a smart choice. It saves you from paying out of pocket for any incident where you're solely responsible.

Businesses also need this type of coverage. Whether you own a small shop or a large corporation, it's essential to protect yourself from potential lawsuits.

Common types of liability insurance

Home liability

With home insurance, liability covers you for physical damage you might cause on your property or in your rented home. If something happens, you're responsible for the damage, but your insurance will handle the costs. This coverage also applies to other people's belongings in your home.

The recommended minimum liability limit for home insurance in Quebec is $1,000,000.

Car liability

With car insurance, liability covers you if you're responsible for an accident. This protection covers bodily injuries and physical damage caused by your vehicle. It also covers legal fees if you're sued.

The minimum liability limit required for car insurance in Quebec is $50,000.

Professional liability

Professional liability covers damages caused during your business operations. This protection helps you in case of a lawsuit for injuries or damages related to your services. It covers legal costs to defend your business.

Personal (or family) liability

This insurance protects you against accidental damages you cause to others in your day-to-day life. It covers accidental injuries and damages to other people's property. Its protection extends to Canada and the United States, with an option to have coverage in other countries.

How to choose the right liability insurance (car and home insurance)

Car liability

While the legal minimum limit for car liability insurance in Quebec is $50,000, it's generally best to consider higher coverage (often $1,000,000 or $2,000,000). 

Why?

Because an accident that causes serious injuries or significant physical damage can quickly exceed that limit.

To choose the right car liability amount, consider the following:

• Your driving habits (e.g., frequent trips to the U.S., where lawsuits can be expensive).
• The type of vehicle you own (some are more expensive to repair).
• Your financial risk tolerance in case of a large claim.

Home liability

The basic amount for home liability insurance is generally around $1,000,000. But it's often smart to go for $2,000,000 or more, especially if:

• You regularly have guests over (more risk of injuries on your property).
• You own a condo or a rental property (an incident could affect several neighbouring units).
• You travel often (some coverages even apply when you're away from home).

How Sonnet can help you with your liability needs

A simplified car and home insurance buying process

At Sonnet, we've made buying car and home insurance really easy. You can get tailored protection in just a few clicks. Our online platform lets you quickly buy a car and home insurance policy that fits your specific needs. No more endless phone calls with an insurer!

We offer efficient services so you can be protected without the hassle. It's simple, fast, and 100% online.

Coverage customized to your needs

Every situation is unique. That's why we offer coverage that fits your reality. Your coverage amount can be adjusted based on your specific needs.

Our insurance covers a wide range of situations, but you can also add extra options if needed. This way, you get protection that truly covers you, without paying for things you don't need.

Online management for access at all times

With Sonnet, you have 24/7 access to your insurance policy. You can view and update it whenever you want, no matter where you are. This lets you keep an eye on your coverage at all times. If something happens when you're away from home, you'll have all the necessary information at your fingertips.

Get car and home insurance with Sonnet!

Looking for car and home insurance that helps you save? Sonnet offers a completely online, affordable, simple, and fast insurance experience. We give you competitive prices and flexible options for your car and home.

Get an instant, tailored quote in just a few clicks today!

Frequently asked questions about liability insurance

What is the minimum liability insurance limit required by law?

In Quebec, the minimum amount required by law for car insurance is $50,000. For home insurance, the law doesn't impose a mandatory minimum, but it's recommended to choose at least $1,000,000 in coverage.

What does liability insurance cover if I injure someone?

Liability insurance covers accidental damages caused by you or your property. This includes bodily injury, physical damage, medical expenses, and settlement costs. You get comprehensive protection for accidents you could be held responsible for.

Does my premium change based on my liability coverage?

Yes. The liability limit you choose directly affects the cost of your premium. If the coverage amount is higher (for example, $2,000,000 instead of $1,000,000), your premium increases slightly. However, the price difference is often small compared to the extra protection you get.