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ARTICLE · 20 FEBRUARY 2015

$750,000,000 Missing Comma Comes Unhinged In BP’s Additional Insured Claim

Courts must consider whether an insurance policy incorporates other documents and the extent thereof in evaluating the existence of additional insured coverage.

United StatesTransport

Maritime

Action Item: Courts must consider whether an insurance policy incorporates other documents and the extent thereof in evaluating the existence of additional insured coverage. Parties should evaluate the policy and underlying contract language to ascertain whether the insurance coverage matches indemnity obligations.

In the ongoing Deepwater Horizon saga, Transocean and its insurers contested whether BP was entitled to additional insured status under Transocean’s policy and the parties’ drilling contract. The case went before the Fifth Circuit Court of Appeals, which at first ruled in BP’s favor, and then withdrew its opinion and certified two questions for the Texas Supreme Court’s consideration. The first asked whether an earlier decision in Evanston Insurance Co. v. ATOFINA Petrochemicals, Inc., 256 S.W.3d 660 (Tex. 2008), compelled a finding that BP was covered for the subsurface pollution damages claimed because the language in the umbrella policy

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