IL STATEAppellate Court of Illinois
2022

Secura Insurance v. Phillips 66 Co.

206 N.E.3d 1027Appellate Court of Illinois • Decided 2022Remanded

HOLDING

Premier Insulation had a master service agreement (MSA) with ConocoPhillips to work at a refinery. When ConocoPhillips assigned that MSA to Phillips 66, Phillips 66 claimed it was an additional insured under Premier's insurance policy. The Illinois Appellate Court ruled that an assignment of an MSA counts as a written agreement for additional insured coverage purposes. This means when you assign a contract to another company, that company can claim insurance coverage without needing a separate written agreement.

KEY FINDINGS

Broad Indemnification

When you assign a contract to another party, that assignment itself can satisfy the 'written agreement' requirement for additional insured status on your insurance policy.

Insurance Requirements

An injured employee's employer doesn't need to be named as a defendant in the lawsuit for insurance coverage to apply—workers' compensation tort immunity rules can still trigger coverage obligations.

Flow-Down

Review your MSAs carefully before assigning them, as assignment may automatically extend additional insured coverage to the assignee without requiring separate insurance documentation.

FULL COURT OPINION