Intact Home Insurance pays for workplace injury

Published: January 12, 2018

Updated: July 24, 2018

Author: Luke Jones



Intact Insurance must cover legal costs in a personal injury lawsuit against a business executive who was in the workplace with a friend who was injured after hours.

Despite the workplace injury, Intact had provided liability coverage under a homeowner policy. Intact tried to argue in an Ontario court that the accident was in access of the loss, arguing the costs should have been shouldered by two other insurance companies.

Stephen Novak was injured when he fell off a ladder outside business hours at a friend’s (Sanjay Patel) office. After the serious injury, Novak sued both Patel and the firm (Lakeland Engineering) and the numbered company that owns the building (also owned by Patel).

The numbered company was insured by Aviva Canada and the policy included bodily injury liability. Patel also had coverage with Aviva, but only when operating in a corporate capacity with the building owner. Finally, Lakeland Engineering had coverage for RSA Canada.

Patel held an individual homeowner personal policy with Intact Insurance. In a ruling released Jan. 9, 2018, Aviva Insurance Company v. Intact Insurance Company, Ontario Superior Court of Justice Freya Kristjanson ruled that Intact must pay for Aviva’s share of $380,000 to settle Novak’s personal injury lawsuit.

“The allegations against Patel do not distinguish between the various capacities in which he was or could have been acting at the time of the loss,” Justice Kristjanson wrote.

“The funding for Patel’s one-third personal interest was split on a 50-50 basis by Aviva and RSA,” Judge Kristjanson added. “Intact took a significant risk by not attending the mediation.”