Come hell or “high-water”: What damage is covered by the Builder’s Risk policy?

On March 6, 2019, the Court of Appeal of Newfoundland and Labrador clarified the question of whether damage to property during a construction project is covered by the Builder’s Risk policy or the General Liability policy held by a contractor. The answer is; it depends. In Dominion of Canada General Insurance Company v Viking Fire Protection Inc.[1] the three-panel decision written by O’Brien J.A. poignantly begins with:

[w]hen water inadvertently escapes from a sprinkler system during construction, the law of gravity will determine its flow. The law of contract will determine whether the property which is damaged as a result of the flowing water is insured under a policy of insurance.

Read more

When a cancellation isn’t a cancellation: Cancelling an insurance policy under the Alberta Insurance Act

When it comes to cancelling an insurance policy, both insurers and insureds need to complete the mandated steps; otherwise, they could potentially face a dispute as to whether or not coverage should occur.

The recent decision from Justice Warren of the British Columbia Supreme Court in McBrien v. Insurance Corporation of British Columbia, 2018 BCSC 553 reinforces the need for attention to all the details when it comes to cancelling an insurance policy.

The facts

On June 30, 2007, the plaintiffs in the action were injured in a single vehicle car accident that occurred in Port Coquitlam, British Columbia. Both plaintiffs were owners named in an owner’s certificate issued by the Insurance Corporation of British Columbia (ICBC), which entitled them to third-party liability coverage under the Insurance (Vehicle) Regulation, BC Reg.

Read more