The insurer is required to provide coverage to the insured for the covered risk!
A real estate investment company (SCI) that undertakes construction work on a residential property purchases construction liability insurance and builder's insurance from an insurance company.
Citing various problems, the condominium owners’ association, following an expert assessment, filed a lawsuit against the real estate investment company (SCI) and its insurer to seek damages.
The insurer and the real estate investment company are ordered to pay jointly and severally in favor of the condominium owners’ association.
The SCI disputes this. In support of its position, it argues that its insurer is obligated to provide coverage and that, as such, it cannot be held liable. It will ultimately prevail.
In hearing this case, the Court of Cassation noted that a liability insurer, ordered to pay—jointly and severally with its insured—in a direct action in favor of the third-party victim, owes coverage to the insured once the risk covered by the contract has materialized.
