Insured denied defence due to failure to disclose business use of motor vehicle

Insurance law – Automobile insurance – Use of vehicle – Breach of policy – Material change in risk – Duty to defend – Duties and liabilities of insurer

Euler v. Economical Insurance, [2021] O.J. No. 2124, 2021 ONSC 3018, Ontario Superior Court of Justice, April 22, 2021, D.C. Shaw J.

The insured used his motor vehicle for the business of delivering pizzas. He was involved in an accident while using his vehicle to deliver pizzas. A claim was subsequently brought against the insured in relation to the accident. He sought a defence from the insurer.

The insurer denied the insured’s claim on the basis that the insured had breached the policy by failing to disclose on his application for insurance and at any point that he used his vehicle for business, which was a change in risk material to the policy.

The insured brought an application seeking a declaration the insurer was obligated to defend him in the underlying action. The court dismissed the application finding the insured had not declared that he used his vehicle for business and this was a material risk to the insurance contract.

This case was digested by Cameron B. Elder, and first published in the LexisNexis® Harper Grey Insurance Law Netletter and the Harper Grey Insurance Law Newsletter. If you would like to discuss this case further, please contact Cameron B. Elder at

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