Superior Court Interprets Meaning Of "Unnamed Insured" In CGL Policy

• Published date: 07 June 2021
• Subject Matter: Insurance, Litigation, Mediation & Arbitration, Real Estate and Construction, Insurance Laws and Products, Trials & Appeals & Compensation, Construction & Planning
• Law Firm: Rogers Partners LLP
• Author: Ms Emily Vereshchak

In Moore Equipment Ltd. v. Temple Insurance Company, 2021 ONSC 3622, the Court examined an endorsement in a comprehensive general liability insurance policy to determine whether the Applicant was entitled to coverage under the policy as an "Unnamed Insured".

Overview

The Applicant, Moore Equipment Ltd. ("Moore"), brought an application seeking a declaration that it was either an additional insured or an "Unnamed Insured" on a policy issued by the Respondent, Temple Insurance Company ("Temple"), to Bondfield Construction Company Limited ("Bondfield").

Temple argued that Bondfield's failure to name Moore as an additional insured precluded coverage and that there was no duty to defend Moore.

Background Facts

Moore leased a scissor lift to Bondfield that was used as part of a construction project involving the installation of solar panels on the roof of a building.

Under the lease agreement, Bondfield was required to indemnify and hold Moore harmless, assume all risks, and be responsible for all damages and losses incurred while leasing the scissor lift. Further, Bondfield was required to obtain all risk liability insurance for the construction project and name Moore as an additional insured.

Bondfield obtained a commercial general liability policy with Temple but failed to name Moore as an additional insured.

The policy contained an endorsement which provided coverage for an "Unnamed Insured:

5. Any person, firm, municipality, government agency or corporation (hereafter referred to as an "Unnamed Insured") in whose name the Named Insured has, by written agreement, contracted to effect insurance as provided by this policy. However, the insurance provided for such Unnamed Insured is restricted to apply solely to liability arising out of operations performed by or on behalf of the Named Insured in connection with contract(s) performed for such Unnamed Insured [emphasis added].

Bondfield also had a contract with the owner of the premises for its construction work. This contract included an electrical inspection of the solar panels. Bondfield obtained a comprehensive general liability policy to cover any claims resulting from the installation and maintenance of the solar panels installed by Bondfield for the owner of the premises.

During the construction, an electrical safety inspector was injured while using the scissor lift to inspect the installation of the solar panels. As a result, the inspector commenced an action in negligence against Bondfield and...