Will Your Homeowner Insurance Cover Bullying Offences? | Neinstein Personal Injury Lawyers

Will Your Homeowner Insurance Cover Bullying Offences?

by | Aug 12, 2016 | Blogs, Homeowner Liability |

Homeowner insuranceThe Ontario Court of Appeal was recently faced with this interesting question in Unifund v. D.E. et al. In this case, Mr. D.E. had a homeowner insurance policy with Unifund, which included liability coverage for actions that cause unintentional bodily injury.

Mr. D.E.’s daughter allegedly bullied a fellow grade 8 student causing her physical and psychological injuries. Mr. D.E. was a named defendant for his failure to control his daughter.

In an application, Mr. D.E. requested that his homeowner insurance policy defend and indemnify him pursuant to his policy; however, his policy contained an exclusion clause whereby Unifund would be entitled to deny coverage for “failure of any person insured by [the] policy to take steps to prevent sexual, physical, psychological or emotional abuse…”

In the initial application, the court held that Unifund was obligated to defend and indemnify as the exclusion clause did not clearly indicate whether the failure to prevent physical and psychological abuse was intentional or not. On appeal, the Court of Appeal disagreed and stated the exclusion clause was not ambiguous and directly aligned with the allegations set out in the Statement of Claim. At trial, should D.E. be found to have failed to prevent physical or psychological harm, that finding would bring his actions squarely within the exclusion clause. In the end, it was held that Unifund did not have a duty to defend or indemnify D.E.

This case underscores the importance of how contracts are worded and interpreted by policyholders and by the courts. Prior to purchasing a homeowner insurance policy, or automobile insurance policy, it is important to speak with a lawyer to ensure you understand all provisions in the policy and how they can affect your coverage moving forward.

Michelle Kudlats

Michelle Kudlats

Michelle joined Neinstein Personal Injury Lawyers LLP as a summer student in 2009 and is currently practicing as a lawyer. Michelle has experience in personal injury, occupier’s liability, insurance disputes, and employment law. She has advocated and appeared at motions and hearings at the Superior Court of Justice, Small Claims Court, Social Benefits Tribunals, and the Bankruptcy Courts.
Michelle Kudlats

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