Business Interruption Insurance Class Action

Koskie Minsky and Merchant Law Group LLP have commenced a proposed national class proceeding alleging that Canadian insurance companies have breached their contracts with business owners, and other duties, by refusing to pay for business interruptions caused by the coronavirus pandemic.

The certified “Class” includes all individuals and businesses in Canada, except those in Quebec, who:

(i) contracted with one or more of the Defendants listed below (other than a Lloyd’s Defendant) for Business Interruption Insurance;

(ii) on or before August 31, 2021, submitted a claim under their Business Interruption Insurance policy for losses due to:

  • (A) the actual or suspected infection of staff, agents, customers or other persons with the SARS CoV-2 virus or its variants at the insured premises or within such proximity as may be specified in the insured’s Business Interruption Insurance policy;
  • (B) the actual or suspected presence of the SARS CoV-2 virus or its variants on the insured premises; or
  • (C) the order of a civil authority regarding the SARS CoV-2 virus or its variants;and

(iii) were denied insurance coverage for those losses by any of the Defendants.

 

The following insurance companies are defendants in this class action:

  • CERTAS HOME AND AUTO INSURANCE COMPANY,
  • CO-OPERATORS GENERAL INSURANCE COMPANY,
  • CONTINENTAL CASUALTY COMPANY,
  • ECONOMICAL MUTUAL INSURANCE COMPANY,
  • FEDERATED INSURANCE COMPANY OF CANADA,
  • GORE MUTUAL INSURANCE COMPANY,
  • INTACT INSURANCE COMPANY,
  • CERTAIN UNDERWRITERS AT LLOYD’S SUBSCRIBING TO POLICY NO. LNP2210,  CERTAIN UNDERWRITERS AT LLOYD’S SUBSCRIBING TO POLICY NO. GASS1300,
  • NORTHBRIDGE GENERAL INSURANCE CORPORATION,
  • NOVEX INSURANCE COMPANY,
  • ROYAL & SUN ALLIANCE INSURANCE COMPANY OF CANADA,
  • SGI CANADA INSURANCE SERVICES LTD.,
  • THE DOMINION OF CANADA GENERAL INSURANCE COMPANY,
  • THE WAWANESA MUTUAL INSURANCE COMPANY, and
  • WYNWARD INSURANCE GROUP

 

UPDATES:

May 9, 2022

The Court has approved Notice to all Class Members of this class action’s certification. Please review the complete Notice here.

  • If you are a Class Member and you wish to participate in the class action, you do not need to take ANY steps right now.
  • If you are a Class Member, but you do not wish to participate in this class action, and you wish to keep your rights to sue any of the Defendants individually, you must remove yourself from the Class before the deadline of August 8, 2022. Please read the Notice for more information.

This calss action litigation will now proceed to trial on behalf of the Class to determine the Court’s answers to three certified Common Issues. The trial of the common issues is scheduled to begin February 2023.

April 21, 2022

The Court certified this class action against only (i) Certain Underwriters at Lloyd’s Subscribing to Policy No. LNP2210 and (ii) Certain Underwriters at Lloyd’s Subscribing to Policy No. GASS 1300, on consent. The Court also dismissed the action against Certain Underwriters at Lloyd’s Subscribing to Policy No. SR040046, on consent. The Court’s Order can be found here.