Same Policy, Same Insured, Different Coverage: BC Court Of Appeal Takes One Step Forward And Two Steps Back In Progressive Homes

On March 26, 2009, the British Columbia Court of Appeal delivered its long-awaited decision in Progressive Homes Ltd. v. Lombard General Insurance Co., 2009 BCCA 129. While this decision provides some clarity on the principles governing the interpretation of insurance policies, Progressive is a disappointing blow not only to participants in the construction industry but also to plaintiff homeowners. It is also likely to result in confusion over the very policies the court had hoped to clarify, since it departs from the position other courts across the country have taken. In the result, a general contractor facing a claim in British Columbia for damages arising from defective workmanship would likely find itself without the benefit of insurance coverage, while a contractor facing the very same claim in Ontario would be entitled to coverage.