The applicants sought an order requiring their insurer to defend or indemnify defence costs in a negligence action arising from a slip-and-fall on shopping centre premises.
The applicants were additional insureds under a commercial general liability policy issued to a snow removal contractor, with coverage limited to operations performed by that contractor under a snow removal agreement.
The court held that some allegations in the underlying statement of claim potentially fell within the contractor’s contractual operations while others alleged independent occupiers’ liability outside the scope of the policy.
Because the pleadings disclosed both covered and uncovered claims, the insurer had a partial duty to defend.
The insurer was ordered to pay 75% of the applicants’ defence costs on an ongoing basis, subject to reconsideration as the factual record develops.