Canada Insurance Law Review

Introduction

As discussed in our previous post,the fluctuating cost of automobile insurance and the extent to which insured persons can rely on insurance protection is partly dependant on how broadly the legislature defines or court interprets the risks of driving (i.e. the more risk an insurer is deemed to cover, the higher the cost to the insured).

Yet, when people experience tragedy, macroeconomic concerns understandably fall to the wayside. The court is routinely asked to stretch the limits of insurance coverage to protect or compensate a single claimant, potentially creating future uncertainty for both insurers and insured persons.  

In Hunt v.

In the recent decision, Sky Solar (Canada) Ltd. v. Economical Mutual Insurance Company, 2019 ONSC 4165, the Ontario Superior Court of Justice undertook a comprehensive overview of three fundamental concepts of insurance law, namely, the scope of coverage, forfeiture and the duty of good faith.

This decision is of interest to insurers, as it clarifies the coverage language contained in Additional Insured Endorsements in the context of commercial general liability insurance. Furthermore, it provides clear demarcation between reasonable and improper conduct by insurers when assessing coverage.

Facts

Sky Solar (Canada) Ltd. (Sky Solar) is a developer of solar energy projects.

Introduction

A new decision from the Alberta Court of Queen’s Bench provides a caution to insureds to double check the accuracy of a denial of coverage. Failure to investigate a denial made in error may mean a plaintiff is out of luck if it tries to bring a claim after the expiry of two years from the date of denial.

The Plaintiff Condominium Corporation (Condo Corp) brought a claim arising from the denial of a claim for water damage to a condominium known as the Palisades Park Villas in Edmonton (Property). In this case, the various insurers, who were subscribers to the Condo Corp’s policy of insurance, applied for summary dismissal of the claim on the basis that it was brought after the limitation period expired.

Introduction

As cybersecurity attacks and data breaches have become increasingly prominent and costly, it is essential that organizations have the proper policies and procedures to protect themselves against significant financial and reputational harm. However, these attacks and breaches cannot be eliminated entirely, even with the most robust security safeguards. Therefore, cybersecurity insurance can act as a last line of defense by protecting an organization from significant financial harm when a breach ultimately occurs. Effectively, businesses can use cybersecurity insurance as part of a holistic approach to managing cybersecurity attacks and data breaches. This article will discuss the importance of cyber insurance policies by providing an overview of the serious threats organizations commonly face today, what cybersecurity insurance is and what it offers, and the limitations of cybersecurity insurance policies.