A Reminder Of The Basic Differences Between A Builder's Risk Policy And A Liability Policy

In the recent case of Bridor inc. c. 90784497 Québec inc., 2022 QCCS 2496, the Superior Court ruled on the fundamental distinctions between a Builder's Risk policy and a liability insurance policy.

Bridor inc. [Bridor] had retained the services of Construction Milkado [Mikado] as a construction manager to oversee the expansion of its plant. In the main claim, Bridor alleged that Mikado had committed three faults in its management of the construction, one of which consisted of damages caused to architectural panels that made up the outside walls of the expansion. The project and the parties were insured under two policies issued by Starr Insurance & Reinsurance Limited [Starr]: a Wrap-Up liability insurance policy and a Builder's Risk insurance policy.