Prince George sues insurance company for failing to cover pandemic-related business losses – Agassiz Harrison Observer

The City of Prince George is suing its insurance company for refusing to cover lost revenue at public facilities during the height of the pandemic.

In an opinion filed in the Supreme Court of British Columbia, the city argues that its business interruption insurance policy with Royal & Sun Alliance Insurance should have covered the closure of several city facilities. In March 2020, the city closed all arenas, pools, conferences, and civic centers in accordance with public health restrictions.

It also closed the doors of the Treasure Cove casino, with which the city entered into a revenue-sharing agreement.

Closing the facilities resulted in a “substantial loss of revenue” for the city, according to court documents.

The city had engaged Royal & Sun to insure its property between July 1, 2019 and July 1, 2020. This policy was later renewed until 2021. The city says it paid “significant premiums” for the policy, which was supposed to cover “all risks”.

“Viruses are assured perils,” the claim reads. “Insured perils include known and unknown perils, including substances such as viral agents that render areas unusable. There is no specific exclusion in the policy for peril or risk of viral pathogens, contagious disease or pandemic.

The policy was also extended to cover losses as the business was affected by the results of “civil authority order” such as public health orders which limited the capacity of enclosed venues and spaces such as swimming pools and hot tubs. casinos. The policy was supposed to cover losses “resulting from loss or damage due to peril or threat of peril”.

But Royal & Sun denied the city’s claims to cover “some or all” of the lost revenue. On or about August 4, 2020, the company said there was no physical loss or damage to property that would have triggered the insurance. He also declined the extension of civil authority as there was no threat of physical loss or damage to the space, but the spaces were closed due to the pandemic.

Prince George is now seeking relief in the form of compensation under his policy, general damages, damages for breach of contract and costs.

Royal & Sun has not yet responded to the notice of civil suit. None of the allegations have been tested in court.


@SchislerCole
cole.schisler@bpdigital.ca
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