Component Parts Not Covered After Removal From Scheduled Rig

Case:   Performance Drilling Co., LLC, et al. v. Nat'l Union Fire Ins. Co., of Pittsburgh, PA, et al.
             United States District Court for the Southern District of Mississippi
             Civil Action No. 3:14-cv-00254, 2016 U.S. Dist. LEXIS 104961 (S.D. Miss. July 28, 2016)

The Insured in Performance Drilling sought coverage under an "all risks" insurance policy for two mud pumps which were removed from a drilling rig and later stolen from the Insured's storage yard under suspicious circumstances. The policy at issue defined "property insured" as equipment "per Schedule." While the rig from which the mud pumps were removed was identified on the Schedule of Property, the stolen mud pumps were not separately scheduled. Upon denial of its claim for coverage, the Insured filed suit against its Insurers asserting breach of contract, negligence and bad faith, among other claims.