Window Cleaning And The 'Your Work' Exclusion Clause In A CGL Policy

The Court of Appeal for Ontario recently upheld a "your work" exclusion in a Commercial General Liability Policy in G & P Procleaners and General Contractors Inc. v. Gore Mutual Insurance Company, 2017 ONCA 298. The insured, G & P Procleaners ("G & P"), was hired to provide window cleaning services at a newly constructed commercial building. During the cleaning, a number of windows were scratched as a result of unforeseen environmental conditions at the construction site (specifically, airborne cement debris from nearby stone cutting machines). On application of squeegees to the windows, cement debris that had accumulated on the wet windows scratched the surface of the glass. G & P paid the owner of the building to replace the damaged windows, and then sought reimbursement from its insurer under its CGL Policy. Coverage was denied pursuant to a "your work" exclusion in the policy.

G & P brought an action against its insurer seeking indemnification under the policy. The insurer brought a motion for summary judgment to dismiss the action on the ground that exclusions applied. The motion was granted and the claim was dismissed; the judge ruled that G & P's claim was barred by two exclusions in the policy and there was, therefore, no genuine issue requiring a trial. G & P appealed, and the Court of Appeal for Ontario upheld the decision of the lower court.

Policy Language

The Court of Appeal for Ontario confirmed that in a claim for coverage, the insured must first demonstrate that a claim fell within the initial grant of coverage. In G & P's case, the initial grant of coverage in the policy insured against "occurrences", provided as follows:

Insuring Agreement We will pay those sums that the insured becomes legally obligated to pay as compensatory damages because of "bodily injury" or "property damage" to which this insurance applies ... this insurance applies only to "bodily injury" and "property damages" which occurs during the policy period. The "bodily injury" or "property damages" must be caused by an "occurrence". ... [emphasis added]

The term "occurrence" was defined in the policy as "an accident, including continuous or repeated exposure to substantially the same general harmful conditions."

Once it is established that the claim falls within the initial grant of coverage, the onus shifts to the insurer to establish that an exclusion applies. In this case, the insurer denied coverage under the terms of the policy on the basis that P &amp...