The authors were recently successful in an Application for
coverage under a builder's risk policy. On April 28, 2025, the
Honourable Mr. Justice Schabas released his decision in Fluid Hose
v. Allianz et al, 2025 ONSC 2517 finding that Fluid Hose, was an
insured under a builder's risk policy of insurance, as a
subcontractor. The decision analyzed and appropriately applied the
principles set out in the leading Supreme Court of Canada decision
of Ledcor Construction Ltd. v. Northbridge Indemnity Insurance Co.,
2016 SCC 37, and affirms that builder's risk policies are to be
interpreted broadly in favour of coverage, erring on the side of
inclusivity.
The underlying case stemmed from a water leak from the HVAC
cabinet in a residential high-rise building under construction. The
cause of the water leak was determined to be a ½ inch ball
valve in the water supply line for the heat pump supplied to the
project by Fluid Hose, which broke in half, resulting in a large
amount of
