By Sean S. Carter and Barry W. Kwasniewski

The Supreme Court of Canada (“SCC”) has found that an insurance company that was unaware of a policy violation could deny full coverage once it was made aware of the violation in question, in a decision that could have implication for all insureds, including charities and not-for-profits. In the case of Trial Lawyers Association of British Columbia v Royal & Sun Alliance Insurance Company of Canada, published on November 18, 2021, the SCC considered whether an insurer had waived its right to deny full coverage when it provided a defence to litigation brought against the estate of one of its insureds. Ultimately, the court concluded the insurer did not waive its right and could deny coverage because it did not know of the policy breach.

For the balance of this Bulletin, please see Charity & NFP Law Bulletin No. 504.

Read the November 2021 Charity & NFP Law Update