An Ottawa-based tanker manufacturer has filed a lawsuit against its long-standing insurance broker following a tragic workplace explosion that claimed the lives of six employees.
The civil suit filed by Eastway Tank Pump and Meter is seeking $14.4 million in damages based on allegations that Gifford Carr Insurance Group failed to ensure the company had adequate business interruption coverage at the time of the blast.
According to Eastway’s claims, Gifford Carr did not provide sufficient coverage for “employee tools” and its Merivale Road yard buildings, which were deemed “beyond repair” after the explosion.
Eastway said it lost around $13 million due to insufficient business interruption coverage.
Gifford Carr had been the company’s broker for over two decades prior to the explosion, which took place on January 2022, according to CBC News.
At the time of the incident, Eastway held commercial insurance through Travelers Insurance Company of Canada, with Gifford Carr providing “assistance and administration.”
When it came time to renew its insurance coverage, Eastway said it encountered delays “due to a lack of attention and diligence.” It specifically named Kevin O'Donoghue, the account executive handling the renewal.
The statement of claim went on to note that documentation related to the renewal was only received on January 14, 2022, a day after the explosion occurred.
Eastway filed its lawsuit against Gifford Carr just as the company and its owner Neil Greene prepare to face charges of workplace safety violations related to the explosion.
The Ontario Ministry of Labour has charged both Greene and Eastway with three counts each under the Occupational Health and Safety Act, including allegations of failing to take reasonable precautions to protect workers.
The explosion became one of Ottawa’s deadliest workplace disasters as it claimed the lives of six Eastway employees – Rick Bastien, Etienne Mabiala, Danny Beale, Kayla Ferguson, Russell McLellan and Matt Kearney.
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