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In pollution claim, ‘sudden’ could mean several months, court finds

Source: https://www.canadianunderwriter.ca/, June 8, 2021
By: Greg Meckbach

Insurance coverage for a “sudden and accidental” release of diesel fuel can include a discharge that continued over several months, the Nova Scotia Court of Appeal has ruled in a commercial coverage dispute.

As a result of Zurich Insurance Company Ltd. v. Halifax Regional Municipality, released June 3, three insurers (the other two being Royal & Sun Alliance Insurance Company of Canada and Arch Insurance Canada Ltd.) may have to pay hundreds of thousands to the Halifax municipal government under a policy covering pollution clean-up. Read more.

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