When a contractor fails to name a property owner as an additional insured

With winter weather on the horizon, ’tis the season for slips and falls. To keep visitors safe, many property owners will contract out their winter maintenance this year. A standard obligation imposed on contractors under these winter maintenance contracts is the requirement to obtain comprehensive general liability insurance naming the property owner as an additional insured. But what happens if the contractor fails to name the property owner as an additional insured?

Duty to defend

An insurer is required to defend an insured against any claim where the facts alleged in the pleadings, if proven to be true, would require the insurer to indemnify the additional insured for the claim.

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THE GIVE-AND-TAKE (AWAY) OF INSURANCE: LOSING BENEFITS FOR FAILING TO FOLLOW THE RULES

Reprinted from the Insurance Brokers Association of Alberta’s magazine – The Alberta Broker (August/September 2019)

The Case

In Greenidge v Allstate Insurance Company,[1] the insured, Jenine Greenidge (“Ms. Greenidge”), sued her insurer, Allstate Insurance Company (“Allstate”), after Allstate terminated Ms. Greenidge’s Section B accident benefits under Alberta’s Standard Automobile Policy SPF No. 1 (“SPF No. 1”).  Following a motor vehicle accident in which Ms. Greenidge suffered whiplash and temporomandibular joint (“TMJ”) injuries, Ms. Greenidge had made a claim under Section B of the SPF No. 1, and initially, Allstate made payments to Ms. Greenidge for her claim.  However, when Allstate requested that Ms.

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Off-coverage positions and the timing of a breach of policy defence: Bradfield v. Royal Sun Alliance Insurance Company of Canada, 2019 ONCA 800

On October 7, 2019, the Ontario Court of Appeal released its decision in the case involving Royal Sun Alliance Insurance Company of Canada (“RSA”) and Jeffrey Bradfield. This decision is noteworthy as it may have the effect of decreasing an insurer’s burden to promptly investigate to determine coverage.

Facts

At all relevant times, RSA provided motorcycle insurance to Steven Devecseri (“SD”). In May 2006, SD was driving his motorcycle with Jeffrey Bradfield (“Bradfield”) and Paul Latanski (“Latanski”). SD guided the group onto the wrong side of the road where they collided with Jeremy Caton’s (“Caton”) automobile.

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Court of Appeal for Ontario strongly affirms the modified causation test: Hunt v. Peel Mutual Insurance Company

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.

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Named insured and additional insured: Same policy, different coverage

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.

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Case Comment: Condo. Corp No. 0427067 v. Aviva Canada Inc., 2019 ABQB 678

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.

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Penny wise, pound foolish: Necessity of getting cyber insurance

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.

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