The trial court ruled in Exxon's favor holding that one of the umbrella policies owed Exxon coverage as an additional insured; however, the court of appeals reversed the trial court finding that the service agreement limited Exxon's status as an additional insured and prevented coverage beyond the primary policy. Photo: Semen Salivanchuk via Adobe Stock
In ExxonMobil Corporation vs. National Union Fire Insurance Company, the Texas Supreme Court recently held that ExxonMobil was an additional insured under an umbrella policy procured by its subcontractor. Additionally, the court held that the terms of the service agreement between Exxon and the subcontractor could not be incorporated by reference into the insurance policy absent clear manifestation of the reference in the terms of the policies itself.
The court further reasoned that assuming, arguendo, the terms of the service agreement were incorporated into the umbrella policy, the subcontractor's obligation to procure a minimum amount of insurance did not limit Exxon's entitlement to policy proceeds the subcontractor obtained in excess of the contractual minimum.
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