The duty to defend in the face of exclusions: Allegations of intentional acts and the use or operation of vehicles
On May 7, 2020, the Supreme Court of Canada denied leave to appeal from a notable decision of the Ontario Court of Appeal on an insurer’s duty to defend. In Pembridge Insurance Company of Canada v. Chu,[1] the defendant, Fabrizi,...
The scope and interpretation of faulty workmanship exclusions in multi-peril policies
In Condominium Corporation No. 9312374 v Aviva Insurance Company of Canada, 2020 ABCA 166, the appellant condominium corporation (the “Corporation”), had engaged a contractor and an engineer to provide rehabilitation and maintenance work with respect to the parkade area in...
Pennsylvania court decision discusses physical damage aspect of COVID-19
Introduction One of the biggest considerations with respect to whether COVID-19 related losses will be covered by business interruption insurance is whether those losses can be considered “physical loss” or “damage”. Although unrelated to the interpretation of an insurance policy,...
The effect of BC Ferries settlement agreements on apportionment of liability and damages at trial
A recent case from the British Columbia Supreme Court dealt with the procedure for apportionment of losses after a BC Ferries Settlement had been reached between some of the defendants. In Conarroe v Tallack, the claim arose out of two...
COVID-19 and accidental death coverage
No one intends to contract COVID-19. In fact, most rational people intend to do just the opposite. What if, despite your best intentions/precautions, you contract COVID-19 by accident? What if this unfortunate event results in your death? Is there a...
Subrogating against government authorities for COVID-19 losses
Introduction The worldwide number of COVID-19 cases is growing daily, with nearly two million currently active cases.[1] Of those cases, approximately 27,000 are within Canada.[2] As the pandemic continues worldwide, more claims have and will be made to insurers regarding...
Leave to appeal to Supreme Court of Canada on issue of insurer’s potential waiver of rights
An appeal of a decision from the Ontario Court of Appeal, Bradfield v Royal Sun Alliance Insurance Company of Canada, 2019 ONCA 800, has recently been granted leave to appeal to the Supreme Court of Canada. The basis of the...
All-risks property insurance: Meaning of physical damage
A recent decision of the Ontario Superior Court of Justice (MDS Inc. v. Factory Mutual Insurance Company (FM Global)) suggests that closures due to COVID-19 could trigger coverage under some business interruption policies. As discussed in a previous Communique, there...
Steps Canadian regulators can (and should) take to minimize the impacts of COVID-19 on insurers
Introduction The Canadian governments, both provincially and federally, have taken many steps to assist different industries survive the economic downturn caused by the coronavirus (COVID-19) pandemic. As of yet, none of these measures have been directly aimed at assisting the...
All perils policies: Is COVID-19 an insured peril?
As the worldwide pandemic continues to rage on, losses faced by businesses increase without any certainty as to when they might end. Such expansive loss has raised many questions for insurers facing potential claims for coverage. One such question is...
