Legal Notes: About that insurance exclusion - Daily Commercial News

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Legal Notes: About that insurance exclusion - Daily Commercial News
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A ruling rendered in June 2023 by the Court of Appeal for Saskatchewan, upholding an earlier Court of King’s Bench decision, stands as a reminder of how understanding exclusion clauses can impact project insurance policy coverage.

However, although it secured wrap-up coverage, KPCL did not obtain course of construction or builder’s risk insurance for the project. In court, Lloyd’s was clear there was a difference between the two and KPCL was attempting to “contort and fit” the event into its actual coverage. KPCL argued that other parties had contributed to the soil embankment prior to its collapse and further submitted that the exclusions should only apply to the uppermost lift of soil where the failure occurred but not the damage to the remainder of the embankment and soils below. KPCL also referenced “ongoing warning signs which repeatedly indicated a predictable embankment failure that was not limited to this one portion of the project.

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