Introduction
In Sir Corp v. Aviva,1 an Ontario judge dismissed an
application by a restaurateur for a declaration of coverage for
business interruption losses. The losses resulted from orders made
in March 2020, following the outbreak of Covid-19 across Ontario.
This is the first decision our office is aware of addressing the
merits of a Covid-19 business interruption claim. Aviva's
policy contained language very different from other Aviva business
interruption policies that are the subject of Covid-19 claims.
Therefore, although Aviva succeeded in this case, it may not be
victorious in other claims.
Facts
SIR Corp. was the owner and operator of approximately 60
Canadian restaurants. Its property insurance was historically
underwritten by Arch. In 2017, when Arch exited the Canadian
property market, Aviva agreed to assume SIR's Arch policy.2 Like
other property policies, subject to conditions and exclusions,
SIR's policy covered direct loss or damage to
