Ontario’s Superior Court just handed down a decision that should have every insurance professional paying attention: Novex Insurance has been ordered to pay $3.2 million to a land surveyor over a professional liability dispute.
Monteith & Sutherland Limited, a land surveyor based in Ontario, faced a claim from Earth Boring Co. Limited after being accused of deficient surveying work on a wastewater utilities installation project in Halton Hills. Earth Boring put Monteith & Sutherland on notice about the alleged errors at a project site meeting on June 9, 2022. The claim, known as the Halton Claim, was eventually settled between the two companies for $3.2 million.
Monteith & Sutherland held a professional liability insurance policy with Novex Insurance, which provided a $5 million per-claim limit and a $6 million aggregate limit. The policy covered two periods: July 1, 2021 to July 1, 2022, and July 1, 2022 to July 2, 2023. The company also carried a separate professional liability policy from Lloyd’s Underwriters for its engineering work, but that policy specifically excluded claims arising out of land surveying activities.
After being notified of the Halton Claim on June 9, 2022, Monteith & Sutherland reported the claim to Novex on July 12, 2022. Novex had already paid $5 million under the policy for a different claim involving a project in Toronto’s Port Lands area, but refused to pay for the Halton Claim. Novex argued that the Lloyd’s policy should take precedence and that the timing of the claim notification placed it outside the relevant policy period. Novex also raised concerns about whether Monteith & Sutherland had fully co-operated during the claims process.
The court examined the policy language and found that Novex’s professional liability policy clearly covered claims for damages resulting from land surveying services. The Lloyd’s policy was not relevant, as it expressly excluded coverage for land surveying activities, which were at the heart of the Halton Claim.
The court determined that the Halton Claim fell within the first policy period, since Earth Boring notified Monteith & Sutherland of the claim on June 9, 2022, before the end of the first policy period on July 1, 2022. The policy’s curative provision allowed for late notice to Novex, as long as it was corrected before the policy expired and did not cause prejudice to Novex. The court found no evidence that Novex suffered any prejudice from the timing of the notice.
On the issue of co-operation, the court found that Monteith & Sutherland had not breached its obligations under the policy. Novex’s main complaint was that the company did not provide a direct response to a reservation of rights letter, but the court found this did not amount to a substantial breach, especially since Novex could not show any harm as a result.
The court ordered Novex to indemnify Monteith & Sutherland for the full $3.2 million settlement of the Halton Claim and to pay $75,000 in costs. The decision was released on August 15, 2025.
For insurance professionals, this case is a reminder that the details of policy wording and the timing of notifications matter. It also highlights that courts will look at the plain meaning of policy terms and expect practical, good-faith communication during the claims process. Minor missteps in procedure, if they don’t cause harm, are unlikely to result in lost coverage.
For those in the insurance industry, especially anyone involved in professional liability, this case is a timely example of how courts are interpreting coverage and notification requirements. It’s a good time to review your own policies and claims procedures—because as this decision shows, the details really do matter.
