Proposed settlement of Aviva Class Action for Canadian business interruption insurance claims

The parties in the Aviva Insurance Company of Canada (Aviva) class action have reached a proposed $150 million settlement related to business interruption insurance claims denied during the COVID-19 pandemic. The Canada-wide lawsuit was brought on behalf of businesses insured by Aviva that sought coverage for losses connected to contagious disease outbreaks under Aviva’s restricted access coverage (RA Coverage) and negative publicity coverage (NP coverage).

This page includes information about the proposed settlement, the court approval hearing and settlement documents.

What is the background to the Canada-wide class action?

In the summer of 2020, Thomson Rogers LLP in conjunction with Lax O’Sullivan Lisus Gottlieb LLP and Miller Thomson LLP commenced a Canada-wide class action on behalf of Canadian businesses that were denied business interruption insurance by Aviva during the COVID-19 pandemic.

What coverage did the Aviva policies include?

Aviva sold enterprise insurance policies to Canadian businesses. These policies included business interruption coverage for the loss of business income resulting from an outbreak of a contagious or infectious disease in specified circumstances under the RA Coverage and the NP Coverage.

Why were business interruption insurance claims denied?

Small and large Canadian businesses applied to Aviva for RA and NP Coverage and were denied. Aviva took the position that the global COVID-19 pandemic did not qualify as an outbreak of a contagious or infectious disease under the policies.

When is the settlement approval hearing?

A settlement approval hearing has been scheduled for Oct. 13, 2026, before the Ontario Superior Court. The attached Notice of Settlement Approval Hearing provides further details about the proposed Aviva class action settlement, as well as the process for objecting to the proposed settlement.

Who is eligible for compensation under the proposed settlement?

If you are an eligible Aviva policyholder with RA or NP Coverage and made an insurance claim to Aviva or Epiq Class Action & Claims Services, or Class Counsel, for business interruption losses related to the COVID-19 pandemic before August 26, 2025, you will be eligible for compensation under the proposed settlement.

Where can I find the settlement documents?

Attached are the Settlement Agreement, entered into by the parties, and the Distribution Protocol, which outlines the process for submitting and assessing claims in the Aviva class action settlement. Claims will be administered by BDO Canada LLP (“BDO”).

When does the claims process begin?

The claims process for the Aviva class action settlement will not begin until the court approves the settlement.

Where can I read more about the Aviva class action case?

More information on the proposed settlement is available on the website administered by BDO at avivacanadaclassaction.bdo.ca

Read the full report on the Aviva class action case.

Who can I contact for more information?

For further information regarding this claim, please contact:

Robert Ben ([email protected] or 416-868-3168) or
Stephen Birman ([email protected] or 416-868-3137) or
Lucy G. Jackson ( [email protected] or 416-868-3154)