Admiral Insurance Co. v. Trident NGL, Inc.
988 S.W.2d 451 | Texas Court of Appeals, 1st District (Houston) | 1999
What This Case Means for Subcontractors
A KD employee was injured at a Trident facility when a compressor exploded—KD's actions didn't cause the injury. Trident was named as an additional insured on KD's liability policy. The insurance company denied coverage, but the court ruled that the additional insured endorsement covered Trident anyway because the injury arose out of KD's operations at the site. This means additional insured coverage can protect you even when your own actions didn't directly cause the loss.
Key Takeaways
- •Additional insured endorsements protect the other party even if your company didn't cause the injury—as long as it happened during your operations at their location.
- •Make sure your insurance policy's additional insured language covers 'arising out of' your operations, not just injuries you directly caused.
- •If you're required to add someone as an additional insured, understand that their coverage is broader than you might think—it extends to incidents that occur during your work presence.
Liability arising out of KD's operations covered additional insured despite KD's non-causation.
Frequently Asked Question
If I'm required to add my client as an additional insured, are they covered for injuries that happen at their site even if I didn't cause them?
Yes, according to this Texas case. If the injury arises out of your operations at their location, the additional insured endorsement typically covers them—even if your company's actions didn't directly cause the injury. This is why the specific language of your endorsement matters: make sure it says 'arising out of' rather than limiting coverage only to injuries you caused.
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