Part 18 published on 01/05/07
Contractor’s insurance gave coverage for damage resulting from contractor’s negligence
The condominium corporation obtained Judgment against the general contractor of the condominium project, for damages resulting from the contractor’s defective work. The contractor had supplied a defective de-watering system, which resulted in voids beneath the footings, leading to serious structural damage to one of the condominium homes.
Having obtained Judgment against the contractor, the condominium corporation then asserted a claim under Section 132(1) of the Insurance Act against the contractor’s comprehensive liability insurer (for recovery of any amount for which the insurer was obligated to indemnify the contractor).
The Court found that the contractor’s comprehensive liability insurance policy did provide coverage for the amounts owed by the contractor to the condominium corporation, and accordingly awarded Judgment in favour of the condominium corporation against the insurer.
[Editorial Comment: There is now a long line of Court decisions about coverage for building defects under contractors’ comprehensive liability insurance policies. Each case will depend, it seems, upon the particular policy wording, and upon the nature of the particular defect and the related damage.]