Claims Examples

Aaxel Insurance develops claims examples, or case studies, on a diverse range of topics to help brokers and clients better understand our products.

Please note that our claims examples can be viewed using Adobe Acrobat Reader. If you do not have Adobe Acrobat Reader installed on your computer, download it here.

Claims Examples by Topic:

1.Architects & Engineers

• Architects & Engineers
• Land Surveyors

2.Construction

• Builders Risk
• Contractors' Commercial General Liability (CGL)
• Owners or Operators of Storage Tanks
• Pollution Liability Insurance for Contractors
• Wrap-Up Liability

3.Directors & Officers

• Non-profit Organizations
• Publicly Traded and Private Corporations

4.Environmental

• Owners or Operators of Storage Tanks
• Pollution Liability Insurance for Contractors

5.Errors & Omissions

• Accountants
• Ambulance Operators
• Benefits Consultants
• Chemists
• Chiropractors
• Counsellors
• Dental Hygienists
• Diagnostic Laboratories
• Disciplinary Matter
• Graphic Artists
• Home Health Care Providers
• Insurance Brokers
• Interior Designers
• Management Consultants
• Medical Clinics
• Medical Doctors
• Mental Health Counsellors
• Miscellaneous E&O
• Mortgage Brokers
• Nurses
• Nursing Placement Agencies
• Opticians
• Optometrists
• Paralegals
• Pharmacists
• Physiotherapists

6.Technology

• Information Technology Professionals

Architects & Engineers

1.Roadway designer’s failure to perform soil investigation leads to claim for $300,000.
2.Roof collapse causes bodily injury. $3 million settlement reached.
3.Problems with faulty air-handling system resolved.
4.Injury caused by fallen insulation protection shield pipe. Settlement of $450,000 reached.
5.Field adjustment error leads to claim for $707,000.
6.Differential settlement in school foundation leads to claim for $3 million.
7.$600,000 claim for damage caused by silt and water infiltration into parking garage.
8.Subdivision plans result in fee action and counterclaim. Settlement reached.
9.Excessive draftiness and insufficient heating due to air circulation system. Settlement negotiated for HVAC system remedial modifications.
10.Cable sleeve melts when the neutral wire comes into contact with an energized transformer pole. Engineer sued. Matter settled out-of-court without contribution from engineer.
11.Structural design and construction deficiencies valued at approximately $580,000. Settlement achieved at pre-trial.
12.Action related to partial building envelope collapse is discontinued against structural engineer.
13.Ground swelling causing cracked foundation. Geotechnical engineer among others sued.
14.Extras claimed by contractor. Four years into litigation, file settles.
15.Deficient commercial site grading and servicing plan resulting in a lawsuit against civil engineer and others. Claimed $500,000 in damages.
16.Revision to design for thickness of floor and walls of project, fails to provide for earthquake loading. Engineer sued - claim takes five years to settle.
17.Insured architect found vicariously liable for error of landscape architect.
18.Allegation that architect was vicariously liable for its sub-consultant who had no insurance. Settlement reached.
19.Architect sued for not carrying out soils inspection leads to suit by developer. Claim settled four years later, prior to trial.

Land Surveyors

1.Pile location error leads to two-month delay and damages of $450,000.
2.Prompt claim reporting of site layout error leads to avoidance of damages for delay.

Builders Risk

1.Theft of copper-based materials from project leads to claim for $40,000. Settlement reached.
2.Damage to exterior glass caused by welding sparks leads to $152,000 claim.
3.Faulty design leads to bridge collapse and claim for $500,000. Settlement reached.
4.Faulty plumbing causes water damage to condominium building. Damages paid in excess of $2.5 million.
5.Flood to parking garage results in heavy systems damages.
6.Subcontractor sues for electrical equipment stolen from site of new hotel. Settlement reached.
7.Torrential rains cause flooding and damage to cofferdams and power stations, as well as delay in start-up of project. Suit brought for $12,000,000.
8.Damage to sheet piling from storm at wharf leads to claim for $150,000.
9.Fire destroys building contents. Settlement reached.

Contractors' Commercial General Liability (CGL)

1.Contractor fails to adequately protect neighboring premises from construction aggregates.
2.Motor vehicle accident on road works jobsite.
3.Improperly protected excavation causes water damage to a large mall, total damages were $75,000. Settlement achieved.
4.General liability bodily injury claim – no WSIB applicable – leads to $235,000 claim.
5.Blasting explosion causes power outage, bringing claims by 13 claimants.
6.Subcontractor strikes duct bank containing fibre-optic cable, suspending service to telephone services for 12 hours.
7.Pedestrian trips on hot tar asphalt, suffering burns.
8.Spark from welding torch causes fire in store, which sustained damage to premises and stock, and business interruption during repair.
9.Collapsed hoarding falls on pedestrian, injuring his leg.

Owners or Operators of Storage Tanks

1.Gasoline tank leak
2.Loading/unloading
3.Tank Farm Spill
4.Heating fuel oil spill
5.Leak contaminates soil and groundwater

Pollution Liability Insurance for Contractors

1.Heating oil contaminates site and adjacent property
2.Property damage and bodily injury caused by mould
3.Asbestos contamination
4.Contaminated backfill
5.Oil-fired furnace failure

Wrap-Up Liability

1.Improperly soldered pipe connection causes water damage during completed operations. Settlement reached.
2.Faulty workmanship excluded, resultant damages covered.
3.Broken window in hotel tower falls on neighbouring property during construction.
4.Bodily injury claim reaches settlement after 18 months.
5.During construction of warehouse, heavy rain flowing from insured site causes nearby homeowners to sustain interior and exterior water, sand and mud damage.
6.Subcontractor strikes sewer line, causing extensive damage. Municipality claims against insured for not properly locating services.
7.Power outage to airline's computer facilities causes loss of use claim. Settlement reached.
8.General contractor sued for loss of use failures. Settlement reached.
9.Buried cable severed by general contractor during construction.
10.Pedestrian sues after tripping over metal protruding from walkway during construction.

Non-profit Organizations

1.Employer’s failure to supervise employee’s use of funds
2.Professional association sued for revoking membership
3.Wrongful dismissal – alleged sexual misconduct
4.Non-profit entity sued by client for discrimination
5.Service club sued by member after membership revoked
6.Wrongful dismissal action alleging defamation
7.Government sues non-profit organization for alleged misuse of funds
8.Licensing dispute resulting in lawsuit against professional association

Publicly Traded and Private Corporations

1.Claims against directors of a bankrupt corporation for taxes and wages in excess of $240,000.
2.Proposed Class Action by shareholders for $300 million.
3.Creditor alleges that directors misrepresented financial situation of corporation prior to bankruptcy.
4.Bankruptcy of a Canadian sporting goods retailer leads to suit in US court for mismanagement and misrepresentation.
5.Allegation by shareholders that statements made by the company were false and misleading, leading to inflated share price.
6.Bankruptcy of successful retail company leads to suit by employees for unpaid wages and vacation pay.
7.Allegation by employee that employer informed third parties he was incompetent, leading to hostile work environment.
8.Plaintiff alleged directors misrepresented financial viability of company to entice potential financing of project.

Owners or Operators of Storage Tanks

1.Gasoline tank leak
2.Loading/unloading
3.Tank Farm Spill
4.Heating fuel oil spill
5.Leak contaminates soil and groundwater

Pollution Liability Insurance for Contractors

1.Heating oil contaminates site and adjacent property
2.Property damage and bodily injury caused by mould
3.Asbestos contamination
4.Contaminated backfill
5.Oil-fired furnace failure

Errors & Omissions

Accountants

Ambulance Operators

Benefits Consultants

Chemists

Chiropractors

Counsellors

Dental Hygienists

Diagnostic Laboratories

Disciplinary Matter

Graphic Artists

Home Health Care Providers

Insurance Brokers

Interior Designers

Management Consultants

Medical Clinics

Medical Doctors

Mental Health Counsellors

Miscellaneous E&O

Mortgage Brokers

Nurses

Nursing Placement Agencies

Opticians

Optometrists

Paralegals

Pharmacists

Physiotherapists

Information Technology Professionals

1.Claim for business interruption due to call centre failure.
2.Trademark infringement leads to suit for lost business.
3.Incomplete backup of files during transfer to new server leads to claim for $30,000.
4.Suit brought against consultant for installation of deficient software.
5.Design of software not compatible with existing system results in claim for misrepresentation and negligence with respect to design.
6.Consultant sues for non-payment of fees.

The claims examples available in this section are for illustrative purposes only. Please remember that only the insurance policy can give actual terms, coverage, amounts, conditions, and exclusions.