Primary and excess insurance carriers and their counsel need to pay close attention to a new Texas Supreme Court case Exxon Mobil vs. National Union Fire Insurance Company of Pittsburgh Pennsylvania and Starr Indemnity & Liability Insurance Company, Supreme Court of Texas, Case No. 21-0936.
In that case, the Texas Supreme Court found an ‘additional insured,’ named as such by virtue of a Master Service Agreement, was entitled to, not only the original insured’s primary policy limits, but also to the original insured’s excess limits despite a provision in the umbrella policy disclaiming ‘broader coverage.’
The facts are as follows: Savage Refinery Services entered into a Master Service Agreement (MSA) with Exxon Mobil. Pursuant to the terms and conditions of that contract and agreement, Savage Refinery Services obtained multiple insurance policies, including a $5 million primary policy with National Union Fire Insurance Company of Pittsburgh Pennsylvania and an additional ‘umbrella’ policy with National Union Fire Insurance Company of Pittsburgh Pennsylvania and a second ‘umbrella’ policy with Starr Indemnity and Liability Insurance Company.
In the Master Service Agreement, Savage Refinery Services agreed to name Exxon Mobil as an additional insured.