After BC’s legendary Sea to Sky gondola was hit by two acts of vandalism in as many years, operators are suing their insurance brokers for allegedly failing to « obtain adequate insurance » after the first incident.
The cable of the gondola was cut for the first time in August 2019 and the attraction had to be closed for repair work until the following February.
One last month at B.C. The Supreme Court alleges two insurance agents for Marsh and McLennan Canada « did not arrange for an extension » of the company’s insurance policy before it expired in January 2020. The company had to apply for two short-term renewals in order to maintain coverage through the end of the month.
It is alleged that the agents also failed to properly announce that the policy would not be renewed for the remainder of the year, forcing the company to renew on « unfavorable terms » while it had a new policy for the remainder of 2020 has found.
The lawsuit is aimed at compensation for alleged negligence, breach of contract, breach of fiduciary duty and negligent misrepresentation.
Regarding the first law on vandalism, it says the company suffered damage and loss due to a « lack of insurance coverage ».
According to the claim, the company’s business interruption cover in the original policy was calculated at a maximum of just under $ 11.4 million. It is claimed that the limit was based on « outdated financial information ».
The company also said it received only 70 percent of that limit for the 2019 vandalism attack, arguing it would have received more « if the appropriate business interruption coverage and limit had been in place ».
None of the allegations have been proven in court and a statement of defense has not yet been filed.
In an email to CTV News, Marsh and McLennan declined to comment on the lawsuit.