After B.C.’s iconic Sea to Sky Gondola was hit by two acts of vandalism in as many years, the operators are suing their insurance brokers over an alleged failure to "procure adequate insurance” following the first incident.
The gondola’s cable was first cut in August 2019 and the attraction had to be closed for repairs until the following February.
A notice of civil claim filed last month in B.C. Supreme Court alleges two insurance agents for Marsh and McLennan Canada “did not procure a renewal” of the company’s insurance policy before it expired in January 2020. The company had to obtain two short-term extensions to maintain coverage until the end of the month.
It’s alleged the agents also failed to give proper notice that the policy would not be renewed for the rest of the year, forcing the company to extend on “unfavourable terms” while it found a new policy for the remainder of 2020.
The lawsuit seeks damages as a result of alleged negligence, breach of contract, breach of fiduciary duty and negligent misrepresentation.
In regards to the first vandalism act, the claim says the company suffered damage and loss due to a “shortfall in insurance coverage.”
According to the claim, the company’s business interruption coverage was calculated at a maximum of just under $11.4 million in the original policy. It’s alleged that limit was based on “outdated financial information.”
The company also says it only received 70 per cent of that limit for the 2019 vandalism attack, arguing it would have received more “if the appropriate Business Interruption Coverage and Business Interruption Limit had been in place.”
None of the allegations has been proven in court and a statement of defence has not yet been filed.
In an email to CTV News, Marsh and McLennan declined to comment on the lawsuit.
Work continues to repair the gondola after the cable was cut a second time in Sept. 2020. No arrests have been made in either incident.