ATOFINA hired Triple S for maintenance work and required Triple S to carry umbrella insurance naming ATOFINA as an additional insured. When ATOFINA got sued, it tried to claim coverage under the umbrella policy for its own negligence. The Texas Supreme Court ruled that umbrella policies can cover additional insureds even for their own negligence if the policy language allows it, and that insurers must honor settlement amounts they wrongfully denied. This matters to subcontractors because it clarifies your rights when you're named as an additional insured on a contractor's insurance policy.
If you're named as an additional insured on a contractor's umbrella policy, you may have direct coverage for your own negligence—check the policy language carefully
Once you settle a claim, the insurance company cannot later deny coverage and refuse to pay the settlement amount they wrongfully rejected
Broad indemnification clauses in service contracts can trigger umbrella insurance coverage obligations, so understand what insurance requirements you're imposing on contractors