Knowledge Centre

Does a Reinsurer Have a Right of Action Against Those Responsible for the Casualty?

July 2011 Stein Monast LLP, Quebec

This is the question the Court of Appeal answered in Boiler Inspection and Insurance Company of Canada v. H.A. Simons Ltd. 2011 QCCA 1194. Domtar was covered by all-risk insurance policy with American Home Insurance Company (American) which in turn had taken out a reinsurance contract with Boiler Inspection and Insurance Company of Canada (Boiler).  After a washing machine malfunctioned, American indemnified Domtar for close to $10,000,000.  Read more.

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