Aviva Canada has agreed to pay a lump sum of at least $150 million to settle various class actions before the courts in several provinces, including one led by manufacturer Nordik Windows. The insured businesses had been forced to close in the spring of 2020 because of the COVID-19 pandemic. 

The proposed settlement will be reviewed by the Ontario Superior Court of Justice on October 13, 2026. Thomson Rogers LLP was leading the Nordik Windows class action. The parties reached the proposed settlement on March 9, 2026. Justice E. M. Morgan of the Ontario Superior Court of Justice acknowledged the agreement on April 29, 2026. 

The agreement includes a no-admission-of-liability clause, and the parties retain their rights if the agreement is not approved by the court or by the members of the class covered by the agreement. 

BDO Canada LLP has been retained to administer the process for members of the various classes. If the proposed settlement receives court approval, the same firm will administer the compensation payment program provided for under the proposed settlement. All documentation is available on the firm’s website. 

Two weeks before the October 13, 2026 hearing, BDO Canada will be required to file an affidavit with the parties and the court. The report will provide a count of the objections and opt-outs from the proposed settlement submitted by class members. 

The lump sum paid by Aviva also includes all settlement administration costs and legal fees. The court will have to approve the portion of this lump sum that will be used to cover lawyers’ fees. 

Compensation covers only the 30-day period following the imposition of public health measures by authorities, from March 18 to April 17, 2020. Each member of the class covered by the settlement must provide evidence of the loss of revenue incurred during that period compared with the same period in 2019. For businesses that were not yet operating a year earlier, a different calculation formula is used to assess the loss. 

Small merchants and owners of small and medium-sized enterprises (SMEs) that wish to use the expedited claims process will be eligible to receive $15,000. These businesses must have joined the class action before August 26, 2025. Distribution of compensation will begin as soon as the Ontario court approves the agreement. 

Two clauses 

The closure of nearly all commercial establishments during the first weeks of public health restrictions imposed because of the COVID-19 pandemic in the spring of 2020 led to a very large number of claims being filed with commercial property and casualty insurers. Nearly all of the claims were denied by insurers on the grounds that the coverage provided under their contracts applied only to physical damage to business property. 

In the absence of such physical property damage, claims were systematically denied by insurers. In the vast majority of cases, the courts upheld these denials of coverage and ruled in favour of the insurance companies targeted by such proceedings. 

The policies covered by the various class actions associated with Aviva’s proposed settlement included the following business interruption coverages: 

  • “negative publicity” coverage (NP) in the event of contagion within a 25-kilometre radius;
  • restricted access coverage (RA) for restrictions imposed by the appropriate authorities.

On May 19, Thomson Rogers explained the distinctive feature of the Aviva policies at issue in the proceedings as follows: “These policies included coverage for business interruption losses (loss of business income) arising from an outbreak of contagious or infectious disease in specified circumstances, under the RA and NP coverages.” 

In denying the claims, “Aviva maintained that the global COVID-19 pandemic did not constitute an outbreak of contagious or infectious disease within the meaning of the insurance policies,” explain lawyers Stephen Birman, Robert Ben and Lucy Jackson of the firm. 

Proceedings stayed in Quebec 

In Quebec, a class action involving bar and restaurant operators, led by lawyer Laurent Debrun of Spiegel Ryan, was authorized in June 2024. In addition to Aviva Insurance Company of Canada, the insurers targeted are Everest Insurance Company, The Sovereign General Insurance Company and HDI Global Specialty. 

On August 5, Justice Dominique Poulin of the Quebec Superior Court temporarily stayed the proceedings, as requested by counsel for the representative plaintiff in the class action, 9356-6677 Québec inc. 

Justice Poulin asked the plaintiff’s lawyers to report to the court on the outcome of the October 13, 2026 hearing before the Ontario Superior Court of Justice as soon as a decision is rendered. 

On June 12, 2025, the court had authorized the company to replace 9391-2186 Québec inc., doing business as Restaurant Académie Crescent, which was itself represented by bankruptcy trustee Groupe Serpone. 

Reached by the Insurance Portal, Laurent Debrun confirms that members of the class action being pursued in Quebec are covered by Aviva’s proposed settlement and will benefit from the same terms provided for in the proposed settlement. “For small establishments, the expedited payment of $15,000 will be welcome,” says Debrun. 

The class action brought by Fritzworks Printing Services against Aviva in British Columbia is also covered by the proposed settlement to be approved by the Ontario court. 

Two other agreements 

On October 14, 2026, the Ontario Superior Court of Justice will hear the parties presenting proposed settlements in two other class actions targeting Aviva. These are being led by Lerners LLP. 

The first is the class action brought by denturists in Ontario, whose representative plaintiff is Matt McCallum. The trial was scheduled to begin on January 19, 2026, but the parties informed the court that they were negotiating an agreement. The agreement was reached on February 9, 2026, and will have to be approved by the Ontario Superior Court of Justice. The policies included the same RA and NP clauses as in the Nordik Windows case. 

It is not possible, however, to determine the lump sum Aviva agreed to pay to avoid a trial in this case. The Insurance Portal attempted to reach lawyers at Lerners by email, without success. 

The representative plaintiff in the second class action is The Royal Canadian Legion, Victory Branch #317. In this case, which also involves numerous military veterans’ associations, Lerners says it has reached an agreement with Aviva, which will also have to be approved by the court on October 14, 2026. Here again, the lump sum offered by the insurer has not been disclosed by the law firm. 

Meanwhile, another class action brought by dental clinics against L’Unique General Insurance will be heard in May 2027 by the Quebec Superior Court. 

Aviva responds 

Until now, Aviva Canada had not released any information about the settlement of these class actions. On August 14, 2026, the parent company released its financial results for the first half of 2026. The documents made available contain no mention of the settlements reached in the class actions targeting the insurer in Canada. 

That same day, Aviva Canada spokesperson Hazel Tan confirmed to the Insurance Portal the existence of the three settlements involving Nordik Windows and the McCallum and Royal Legion class actions. The plaintiffs’ class actions “seek indemnity for business interruption losses suffered by insured businesses as a result of the COVID-19 pandemic,” she said by email. 

“These settlement agreements are without admission of liability and for the purpose of fully and finally resolving the claims against Aviva, subject to approval by the Ontario Superior Court of Justice. Aviva is unable to comment further pending court approval,” she added.