B.C. resort sues brokerage following 2023 wildfire damage 

A lake resort in British Columbia has filed a lawsuit against its insurance brokerage, saying it can’t rebuild after being destroyed by a 2023 wildfire due in part to what it calls “gaps” in the insurance coverage for the resort’s utilities, including water, sewage, and electrical services. 

Lake Okanagan Resort and a related holdings company are suing Western Financial Group and another unknown insurance brokerage (identified as ABC Company in the resort’s notice of claim) in a lawsuit filed with the B.C. Supreme Court on Aug. 15. 

The details in the resort’s notice of claim, obtained by Canadian Underwriter, have yet to be proven in court. 

CU reached out to Western Financial Group for comment on the proceedings.  

“As this matter is currently before the courts, we are unable to comment on the specifics of the case,” a spokesperson said. “Western Financial Group remains committed to supporting our clients and upholding the highest standards of service and integrity.” 

The claim 

Lake Okanagan Resort and the holdings company claim Western Financial Group and the unknown brokerage placed several insurance policies for the resort, “including a policy for the marina and gas bar, a commercial general liability policy, an insurance policy for the resort property, and an environmental impairment liability policy.” 

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But Lake Okanagan Resort claims Western Financial Group and/or the unnamed brokerage did not place insurance covering the resort’s utilities.

A wildfire on Aug. 17, 2023 destroyed most of the resort’s buildings and properties, including the utilities, the resort says in its statement of claim. Since then, the resort has been unable to afford the cost to replace and repair the utilities due to a lack of insurance coverage, the statement of claim adds. 

“Due to a lack of water, sewage and electrical services, [the resort] is unable to rebuild any buildings or facilities on the resort, and the owners of the strata properties are unable to rebuild the strata buildings,” the statement of claim reads.  

Additionally, the resort claims the buildings that are still standing can’t be occupied due to the lack of utilities.  

As a result, Lake Okanagan Resort says it’s suffered, and continues to suffer, from losses and damages. 

Lake Okanagan Resort and the holdings company “have a longstanding business relationship with [Western Financial Group]. WFG was and ought to have been familiar with [the resort’s] business and insurance needs,” the notice of claim reads. 

The resort claims negligence, arguing Western Financial Group and the unknown brokerage breached their duty of care to provide insurance for the utilities. They say those duties required the brokerage, among other things, to: 

• Act skillfully, diligently, competently and in the best interests…in placing insurance coverage for the property 

• Ensure the insurance coverage which it secured for the resort was sufficient for the resort’s needs 

• Make enquiries and investigations regarding the nature of the resort, the business, and their insurance needs 

• Make enquiries regarding the availability of insurance coverage that would protect them in the event of a loss 

• Advise them on the availability of insurance coverage that suited their needs 

• Advise them of any potential gaps in their insurance coverage and the consequences thereof 

• Advise them on situations where the property did not have adequate coverage 

Western Financial Group has between 21 and 49 days to respond to the civil claim, depending on where it was served.  

Alyssa DiSabatino

Alyssa Di Sabatino has been a reporter for Canadian Underwriter since 2021, covering industry trends, market developments, and emerging risks.