The Court of Appeal for Ontario has affirmed the duty to defend in a recent case exploring if consequential or resulting damage attracts commercial general liability coverage. The decision is of interest because it negated the motion judge’s ruling, which seemed to be the first Canadian case to address if application of the “subcontractor exception” in the “your work” exclusion can be constrained by a finding that the subcontractor was engaged only as a supplier, and not a contractor.
A “work performed” exclusion in a commercial general liability policy for a building contractor does not apply if a lawsuit against a contractor alleges consequential damage, the Court of Appeal for Ontario suggested in a ruling released Tuesday. Parkhill Excavating…