Insurer has duty to defend on ’30-minutes-or-its-free’ corporate policy

An Ontario Superior Court judge has ordered an insurer to defend a pizza company on allegations that the company’s “30-minutes-or-it’s-free” delivery policy caused driver negligence leading to a collision.
Pizza Pizza Limited faces court allegations of negligence in relation to its speedy delivery policy, which promises delivery in up to 30 minutes or else the driver is required to pay for a late pizza out-of-pocket. The allegations stem from an incident in which a Pizza Pizza delivery person struck and injured a pedestrian.
The plaintiff alleged Pizza Pizza failed to have safe driving policies in place, failed to test the driver for his propensity for speed and failed to investigate his driving record.
In Aviva Insurance Company of Canada vs. Pizza Pizza Limited, Pizza Pizza argued it was entitled to coverage by Aviva under a commercial general liability (CGL) policy.
Aviva argued it has no duty to defend and is not obligated under its CGL Policy to cover the plaintiff’s claims. Furthermore, the insurer argued, those claims ought to be covered by ING Canada’s non-owned policy.
“I accept Pizza Pizza’s view there is a non-automobile related concurrent claim in relation to injury caused by Pizza Pizza’s corporate policy,” writes Ontario Superior Court Justice Beth Allen.
“I find the pleadings do give rise to the possibility that the plaintiff’s injuries were caused by Pizza Pizza’s delivery policy and failure to screen drivers’ driving records. I find that claim is independent of the claim that involves the use or operation of an automobile, and for that reason, falls outside the scope of the exclusion in Aviva’s CGL policy.”
ING has a duty to defend under its non-owned policy on the automobile related claims, she added.