The Sea to Sky gondola is suing its insurance brokers on charges of alleged negligence, among other things, after claiming they did not get adequate insurance for the gondola in 2020.
The cable of the nacelle was cut for the second time this year.
Marsh and McLennan Holdings (Canada) named ULC, Marsh Canada Limited, Sandy Millar and Wendy McNary as defendants in a lawsuit filed in Vancouver Courts on December 7th.
Millar and McNary are identified as insurance agents representing Marsh and McLennan. They previously worked for Jardine Lloyd Thompson Canada Inc., which dealt with the nacelle before Jardine was taken over by Marsh and McLennan.
The gondola is suing for damages due to alleged negligence, breach of contract, breach of fiduciary duty and negligent misrepresentation.
The gondola claims the defendants « did not take out adequate insurance for the [Sea to Sky Gondola] in 2020. »
According to the statement of claim, Millar and McNary told Gondola that their insurance policy may not be renewed in January 2020.
The defendants did not arrange for the policy to be extended before the policy expired and forced the gondola to receive two short-term extensions that lasted until the end of January.
Around January 22, 2020, the day the second renewal would expire, the defendants allegedly said they could not renew the policy, the claim said.
« The second extension of the policy has expired without the policy being renewed or extended, » said the gondola claim. « As a result, [the Sea to Sky Gondola] had to extend the policy on unfavorable terms, while it took out new property insurance for the Sea to Sky Gondola for the remainder of 2020. »
Kirby Brown, the gondola general manager, told The Chief that the tourist attraction was insured during the second sabotage in 2020 and has been working with its insurance provider ever since.
« We switched brokers last year and managed to secure coverage for the remainder of 2020, » Brown said in an email.
In their claim, the gondola also complained that there were issues with insurance coverage for 2019 when the gondola cable was first cut.
The allegation states that the nacelle was compensated for « only approximately 70% of the business interruption loss » incurred as a result of the initial sabotage.
The nacelle was insured for approximately $ 11.39 million in business interruption coverage.
In the lawsuit, the loss of business interruption is described as the revenue that the nacelle believes was lost because operations were suspended for several months as a result of the 2019 sabotage.
The Gondola claims its insurance brokers should have known that business interruption insurance coverage was « derived from outdated financial information and outdated estimates and forecasts, » among other things.
As a result, the nacelle is only partially compensated through its insurance for the loss of business caused by the 2019 sabotage, the claim said.
Marsh and McLennan declined to comment on the matter.
Sandy Millar did not respond to an email request for comment by the time we went to press.
The chief left voice messages with a phone number listed under the name Wendy McNary and turned on a Facebook account with that name. No replies were received at the time of going to press.