You may have home insurance, auto insurance, or even commercial coverage—but is it enough? When unexpected lawsuits or claims go beyond your existing policy limits, umbrella liability insurance can step in to protect you from financial disaster. So how much does an umbrella liability insurance policy cost in Ontario? The answer might surprise you—in a good way.
At Buckler Insurance, we help clients understand the value of umbrella coverage and how it fits into their overall insurance strategy. In this post, we’ll explain what umbrella insurance is, what it covers, how much it typically costs, and why it’s a smart investment for many individuals and businesses.
Related Article: What Is Umbrella Liability Insurance
What Is Umbrella Liability Insurance?
Umbrella liability insurance provides extra protection beyond the limits of your existing insurance policies, such as home, auto, or watercraft insurance. It acts as a financial “umbrella” that kicks in when a claim exceeds your primary coverage.
For example, if your auto insurance policy covers up to $1 million in liability, but you’re sued for $2 million after a serious accident, your umbrella policy can cover the additional $1 million—so you don’t have to pay it out of pocket.
Umbrella insurance is designed to cover:
- Legal fees
- Medical bills
- Damages awarded in lawsuits
- Liability claims not covered by standard policies (in some cases)
It’s especially useful for people with significant assets, high public exposure, or elevated personal liability risk.
Who Needs Umbrella Insurance?
You don’t have to be wealthy to benefit from umbrella insurance. If you own a home, have a car, or enjoy recreational activities like boating, umbrella coverage can offer peace of mind. It’s a small cost to protect against large, unpredictable risks.
You may want to consider umbrella insurance if you:
- Own property or rental units
- Drive regularly or have teen drivers in your household
- Host guests at your home
- Have a pool, trampoline, or pet (yes, even friendly dogs can lead to lawsuits)
- Are active online (libel/slander claims do happen)
- Sit on a volunteer board or coach youth sports
- Run a small business
- Have significant savings or investments
Umbrella coverage is also common for business owners who want to extend liability protection beyond commercial general liability (CGL) policies.
How Much Does Umbrella Liability Insurance Cost in Ontario?
Here’s the good news: Umbrella insurance is one of the most affordable types of coverage—especially when you consider how much protection it provides.
In Ontario, you can typically expect:
- $1 million policy: starting around $150 to $300 per year
- $2 million policy: around $250 to $450 per year
- $5 million policy: $500 to $800+ per year
Rates vary depending on:
- How many properties and vehicles you own
- Number of drivers in your household
- Your underlying insurance policy limits
- Previous claim history
- Level of risk associated with your lifestyle or business
What Does Umbrella Insurance Cover?
Umbrella liability insurance can cover a broad range of situations, such as:
1. Bodily Injury Liability
This includes injuries to others caused by your actions or negligence. Common scenarios:
- A guest slips and falls on your icy driveway
- You cause a major car accident, and multiple people are injured
- Your dog bites a visitor
Umbrella insurance helps cover medical bills, legal defence costs, and potential settlements that exceed your standard policy.
2. Property Damage Liability
If you accidentally damage someone else’s property—such as crashing into a building or backing into someone’s fence—umbrella coverage can kick in after your primary policy pays its limit.
3. Personal Liability
This includes defamation, libel, slander, or false arrest. If you’re sued for something you said or posted online, your umbrella policy may cover legal fees and any resulting damages.
Related Article: Why Do I Need Personal Liability Insurance?
4. Landlord Liability
If you rent out property, umbrella insurance can offer additional protection beyond what your landlord or rental property policy covers.
What Umbrella Insurance Does Not Cover
Umbrella insurance is for liability, not personal losses. It doesn’t cover:
- Damage to your own property
- Your personal injuries
- Business-related liabilities (unless specified)
- Intentional acts or criminal behaviour
- Contract disputes
You must also maintain minimum liability limits on your auto or home insurance for the umbrella policy to apply. Your broker can explain how to structure your coverage correctly.
Related Article: Home Insurance in Toronto: Common Claims and How to Protect Your Property
Real-Life Examples of Umbrella Insurance in Action
Umbrella insurance might seem abstract—until something unexpected happens. These real-life examples show how umbrella coverage can step in when standard policies fall short, protecting you from major financial loss.
Auto Accident Liability
A driver runs a red light and causes a serious multi-vehicle accident. Their auto insurance covers up to $1 million, but the damages exceed $2.5 million. Without umbrella insurance, the driver would be responsible for the remaining $1.5 million. With a $2 million umbrella policy, those costs are covered.
Injury on Your Property
A neighbour’s child is injured while using your backyard trampoline. Their family sues for $750,000 in medical costs and pain and suffering. Your home insurance only covers $500,000. Your umbrella insurance covers the remaining $250,000 and legal expenses.
Defamation Lawsuit
You post a review online that a business owner claims is defamatory. They sue for libel. Your standard policies don’t cover personal liability for defamation, but your umbrella policy does, including legal defence and settlement costs.
How to Get Umbrella Insurance
Umbrella insurance usually requires that you carry a certain amount of liability coverage on your existing auto and home policies. Most insurers require:
- $1 million in auto liability
- $1 million in home liability (if applicable)
You don’t need to buy umbrella coverage from the same provider as your other policies, but bundling through one broker—like Buckler Insurance—makes coordination easier and may result in additional discounts.
Our team will:
- Review your current policies
- Identify any gaps or risks
- Compare umbrella insurance quotes from top Canadian insurers
- Help you understand the terms and conditions
- Set up your policy and assist with any claims if needed
Why Choose Buckler Insurance?
With decades of experience and strong partnerships across the industry, Buckler Insurance simplifies the process of getting umbrella insurance—and makes sure you’re not overpaying or under-covered.
Here’s how we help:
- Access to multiple insurers for competitive pricing
- Personalized guidance from experienced brokers
- User-friendly mobile app for policy management and claims
- 24/7 customer support when you need it most
- Expert claims assistance to help you navigate difficult situations
We believe in proactive protection. Adding umbrella insurance to your personal or commercial policies is one of the smartest ways to safeguard your future.
Secure More for Less
A single lawsuit can wipe out years of savings. For less than a dollar a day, umbrella insurance gives you a financial safety net that covers the unexpected and protects everything you’ve worked for.
If you want to extend your coverage without spending a fortune, umbrella insurance is a smart move—and Buckler Insurance is here to make it simple.
Want a free quote or have questions?
Contact or call us today to speak with a licensed broker to find out about umbrella liability insurance cost and get a policy that fits your needs and budget.
