A Contentious Insurance Issue - The Scope of the Duty to Defend Under a CGL Policy


The Supreme Court of Canada recently had an opportunity to consider a contentious issue in Canadian insurance law, namely, an insurer's duty to defend under a Commercial General Liability (CGL) policy issued to a building contractor.

The decision by the Supreme Court of Canada is significant because the Supreme Court swept away several of the arguments of CGL insurers that have met with success in lower courts. It demonstrated a willingness to give full effect to the insurer's duty to defend under a CGL policy in the construction field.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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