Subrogation immunity: effect of an obligation to insure

The English courts have recognised that if, as between two contracting parties, one has the obligation to take out liability insurance for the benefit of both parties, the insuring party is generally to be taken as having agreed to bear the risk of any third-party claim. That is, however, subject to other terms in the contract. In Capital Sewer Servicing Inc v Crosslinx Transit Solutions Constructors 2022 ONCA 10 the Ontario Court of Appeal decided that the other provisions of the contract made it clear that the risk was to be borne by the other party.

Crosslinx: the facts