Liability Insurance in Quebec: Complete 2025 Guide

Liability insurance is one of the most fundamental protections for individuals and businesses in Quebec. Without it, a single accident can expose you to personal liability for hundreds of thousands of dollars. Our AMF-certified brokers compare the best policies on the market to provide you with coverage tailored to your situation.

What is Liability Insurance?

Liability insurance (RC) protects your personal assets or your business when you inadvertently cause damage to a third party — whether bodily, material, or financial. Under the Quebec Civil Code (art. 1457), any person is required to repair the harm they cause through their fault.

The insurer covers two types of expenses: compensation to the victim (damages) and legal defense costs (lawyers, experts). The latter can exceed 100,000 dollars for a lawsuit, even if you are ultimately found not at fault.

The 4 Types of Liability Insurance in Quebec

1. Personal Liability Insurance

Included in your home insurance policy, it protects you in your daily life: damage caused at friends’ homes, injuries inflicted by your dog, a bicycle accident causing harm to a pedestrian. Standard coverage is 1 million to 2 million dollars per event.

2. Commercial General Liability Insurance

It protects your business against claims from customers, suppliers, or bystanders who are injured or whose property is damaged in the course of your operations. Essential for any retail business, office, restaurant, construction site, or service provider.

3. Professional Liability Insurance (E&O)

Also called errors and omissions insurance, it covers professional mistakes: bad advice, calculation errors, oversights, or negligence in the provision of your services. Mandatory for many regulated professions in Quebec: CPAs, engineers, architects, notaries, brokers.

4. Product Liability Insurance

For manufacturers, importers, and distributors, it covers claims related to injuries or damage caused by your products, even after they are sold. It’s critical coverage for any business that sells physical goods in Canada or the United States.

Recommended Coverage Limits by Profile

Profile	Recommended Limit	Main Reasons
Individual / Renter	1M$ to 2M$	Water damage, home injuries
Owner-Occupant	2M$ to 3M$	Liability to visitors
SME, services, retail	2M$ to 5M$	Customers, suppliers, bystanders
Subcontractor / Builder	5M$	Client requirement
Regulated Professional	1M$ to 5M$	Professional order requirement
Manufacturer / Exporter	5M$ or more	Product claims in Canada/US

Note: some government contracts and clients require verifiable minimum coverage levels via a certificate of insurance. Your broker can issue this document quickly.

What Liability Insurance Covers — and What It Doesn’t

Covered

• Accidental bodily injury caused to a third party (fractures, hospitalizations, permanent consequences)
• Accidental property damage (destruction, deterioration of others’ property)
• Legal defense costs, even if you are found not at fault
• Claims related to your products or services (depending on coverage)
• Damage caused by your employees in the course of their duties

Excluded (Common Exclusions)

• Intentional or fraudulent damage
• Claims from your own personnel (covered by CNESST)
• Pollution and environmental contamination (requires separate coverage)
• Damage to your own property (covered by property insurance)
• Claims between shareholders or partners of the same business

Get Your Liability Insurance Quote

Fill out the form below to receive a personalized liability insurance quote. An AMF-certified broker will contact you within 24 hours.

Resources and Useful Links

• Business Insurance in Quebec
• Industrial Insurance
• Home-Based Worker Insurance
• Home Insurance (liability included)
• Auto Insurance
• Insurance Broker in Quebec
• AMF — Insurance Guide
• Insurance Bureau of Canada (IBC)
• Quebec Civil Code

Frequently Asked Questions — Liability Insurance Quebec