The Texas Court  of Appeals affirmed summary judgment in favor of an insurer based on the inapplicability of an additional insured endorsement. The case is Cont'l Cas. Co. v. Am. Safety Cas. Ins. Co., 365 S.W.3d 165 (Tex. Ct. App. 2012). 

Williams Underground was a subcontractor for Traffic Systems Construction, Inc. on a road construction project. A Williams employee was injured by a third-party vehicle while working. He sued Williams, Traffic, and the vehicle driver for negligence. Traffic was insured by Continental Casualty Company, and Williams had a policy through American Safety Casualty Company. 

Traffic requested coverage under the additional insured endorsement attached to the American Safety policy, but American Safety refused on the grounds that the underlying suit was either not covered or excluded by the American Safety policy. Continental defended Traffic in the underlying suit and ultimately settled with the injured employee for $250,000.