Knowledge Centre

Property Insurance – Is Fraud Covered or Not?

October 2015 Donati Maisonneuve, Que

6916643 Canada inc. v. Santos Guzman., 2015 QCCQ 6136

When an insured claims benefits from the insurer that is insuring its property against loss related to fraud, this loss is usually not covered by the insurance policy. However, if this policy does not explicitly mention that it only covers the physical loss of property, the motion in inadmissibility will be denied, because there is a possibility that fraud will be considered as a covered risk when a judgment on the merits is rendered.

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