Can a mechanical exclusion apply to a loss of income due to a failure of a furnace that is not contemplated by the exclusion?
Ontario, Canada
The following excerpt is from O'Byrne v. Farmers’ Mutual Insurance Company (Lindsay), 2014 ONCA 543 (CanLII):
The appellant relies on Derksen v. 539938 Ontario Ltd., 2001 SCC 72, [2001] 3 S.C.R. 398, as authority for the proposition that an exclusion can be worded so as to apply to a loss with multiple causes if only one of the causes is contemplated by the exclusion. The appellant asserts that, to the extent that the loss was caused in part by the tenant’s conduct (not contemplated by the mechanical exclusion) and in part by the failure of the furnace’s ignition (contemplated by the mechanical exclusion), the mechanical exclusion ought to apply to the entirety of the loss, and coverage ought to be excluded.
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