Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

The Aviva logo is displayed at the company's head office in London, on March 7, 2019.

Simon Dawson/Reuters

Insurer Aviva Canada faces a proposed class-action lawsuit that claims Canadian businesses have been denied contagious-disease coverage during the COVID-19 pandemic.

Toronto law firm Thomson Rogers filed a request for certification of a class action last week in the Ontario Superior Court against Aviva Insurance Company of Canada, alleging the company failed to honour its business-interruption claims for Canadian businesses with what is known as enterprise-insurance policies. The policies include protection for the loss of business income as a result of an outbreak of a contagious or infectious disease.

“Because this matter is in litigation, we’re unable to comment publicly,” said Jennifer Shah, a spokesperson for Aviva Canada.

Story continues below advertisement

The case is the latest in a string of proposed class-actions that have been filed against insurers who offered business-interruption insurance to small and large companies. In May, Merchant Law Group LLP applied for certification as a Canada-wide class-action on behalf of business owners and some self-employed professionals whose business-interruption insurance claims have been denied during the COVID-19 pandemic, including owners of hotels, bars, restaurants and salons.

Monday’s class action application was filed on behalf of Nordik Windows Inc., a window manufacturing and installation company in Ontario. Nordik filed a claim under its enterprise-insurance policy when it had to close for several months because of the pandemic. The lawsuit seeks $100-million in damages on behalf of companies whose claims were denied.

According to court documents, Aviva denied the claim in early June, stating COVID-19 does not constitute an outbreak of a contagious or infectious disease.

“Aviva has allegedly failed to honour its good-faith obligations to its policy-holders with respect to business-interruption claims resulting from the COVID-19 pandemic,” Robert Ben and Stephen Birman, partners at Thomson Rogers, said in a statement. “This has put Canadian companies on the brink when they are most vulnerable.”

Mr. Ben told The Globe and Mail he is urging Canadian businesses to take a second look at their insurance policies, as many are unaware that they have contagious-disease coverage, and some may have claims that have wrongly been denied by Aviva.

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.

Coronavirus information
Coronavirus information
The Zero Canada Project provides resources to help you manage your health, your finances and your family life as Canada reopens.
Visit the hub

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow the author of this article:

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error Editorial code of conduct
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies