A natural gas utility in British Columbia has sued a group of insurers for denying claims related to a 2017 fire at a liquified natural gas (LNG) plant in Delta, B.C., according to a Business Vancouver report.
FortisBC has filed a lawsuit against AIG, Liberty Mutual, Royal & Sun Alliance, Starr Insurance & Reinsurance, Temple Insurance, Zurich Insurance, Ironshore Canada, XL Specialty Insurance, Catlin Canada, and Lloyd’s Underwriters, alleging that the firms wrongfully denied a $16 million claim under a builder’s risk policy for delay costs and other expenses incurred in the fire’s aftermath.
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FortisBC claims that the fire damaged the LNG plant during construction work on an expansion project, forcing the utility to shut down its thermal oxidizer. The company said that the oxidizer’s shutdown “significantly delayed” operations at the Tilbury plant, causing “losses of revenue and profits.”
According to Business Vancouver, the allegations in the lawsuit have not been tested or proven in court, and none of the defendants had filed responses by press time.
