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ARTICLE · 19 MAY 2021

Wrap Up Insurance And Tort Immunity

Clark Wilson LLP
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Wrap Up insurance serves an important function on construction projects, providing uniform liability coverage for contractors and subcontractors.

CanadaReal Estate and Construction
Satinder Sidhu
Satinder Sidhu
Denny Chung
Denny Chung
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Wrap Up insurance serves an important function on construction projects, providing uniform liability coverage for contractors and subcontractors. If a general contractor agrees to secure the wrap naming the subcontractors, does this covenant to insure give rise to tort immunity i.e. relieve a subcontractor from its negligence and/or obligation to indemnify for losses caused by the subcontractor. The Ontario Superior Court considered this issue recently in Crosslinx Transit Solutions Constructors v. Capital Sewer Serving Inc., 2021 ONSC 1091.

On February 21, 2018 a sewage backup damaged two properties near a light rail construction project in Toronto. Capital Sewer Servicing Inc. ("Capital") was a subcontractor working on the project at the time. The property owners commenced actions against Capital as well as the contractor that retained Capital, Crosslinx Transit Solutions Constructors ("Crosslinx").

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