When Can an Insurance Policy Breach Be Forgiven?

Strict compliance with an insurance policy is not necessarily required for an insured to recover under the policy.

Two of the main considerations in determining whether an insured should be relieved of a breach of a policy are the seriousness of the breach and prejudice to the insurer.

Brian Sunohara discusses the Ontario Court of Appeal’s most recent decision on these issues in an article entitled “When Can an Insurance Policy Breach Be Forgiven?”

In denying relief from forfeiture, the Court of Appeal agreed with the trial judge that the insured did not have a reasonable explanation for providing late notice and that the insurer was prejudiced.