Cressey Development Corp. and a group of affiliates are suing Lloyd’s Underwriters and several other insurers over losses suffered in the Fort McMurray wildfire in 2016.
Cressey filed a notice of civil claim in BC Supreme Court on May 3, naming Lloyd’s, QBE Services Inc., Royal & Sun Alliance Insurance Co. of Canada, AIG Insurance Co. of Canada, Catlin Canada Inc., Continental Casualty Co., Chubb Insurance Co. and Arch Insurance Canada Ltd. as defendants.
Cressey claims 10 properties it owns in Fort McMurray were damaged by the fire, all rental buildings in “varying states of occupancy” when the fire “swept through Fort McMurray” on May 1, 2016. The properties, according to the claim, suffered “extensive fire and smoke-related damage” and couldn’t be rented or occupied during the seasonal peak.
The defendants each hold a share of Cressey’s policy for the properties, with QBE and Lloyd’s holding the largest chunk at 28%; Royal’s share is 25%; AIG’s 15%; Catlin’s 12%; Continental’s 10%; and Chubb and Arch each hold 5%, according to the lawsuit. The policy covers business interruptions and property losses with a limit of $100 million, Cressey claims. The companies’ losses were reported to the insurers on May 4, 2016, “but to date the insurers have not complied fully with the obligations in the policy,” the claim states.
Cressey and its affiliates seek unspecified damages for breach of contract of insurance. The allegations have not been tested or proven in court, and the defendants had not responded to the claim by press time.
