The Importance Of The Nature Of The Claim In Determining Coverage

In Hemlow Estate v. Co-operators General Insurance Company, 2021 ONCA 908, the Ontario Court of Appeal dismissed an insurer's appeal of a coverage application decision, in which the application judge had held that the insurer had a duty to defend the insured.

Background

Mr. Hemlow had been a sole proprietor who carried on business as a mechanical contractor, and held a valid policy of commercial general liability insurance with Co-operators.

In 2015, Hemlow was subcontracted by a company to carry out inspection services at a processing facility ("the Property"). During the course of his work, Hemlow was killed from exposure after opening a valve containing pressurized ammonia. The exposure also caused significant damage to the Property.