Opinion ID: 6109919
Heading Depth: 1
Heading Rank: 2

Heading: The Terminal Agreement and the Policy Endorsement

Text: Western and Cactus entered into an Asphalt Terminal Access Agreement (Terminal Agreement) that required Cactus to carry insurance, including workers' compensation insurance. As related to this matter, the Terminal Agreement contains the following provision regarding Cactus's workers' compensation insurance: The insurance ... shall be ENDORSED to contain a waiver of subrogation against the WESTERN ENTITIES .... (Emphasis added). Wausau was the workers' compensation carrier for Cactus. Pursuant to the Terminal Agreement, Cactus purchased an endorsement to its policy entitled Texas Waiver of Our Right to Recover from Others Endorsement. The endorsement provides as follows: We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule , but this waiver applies only with respect to bodily injury arising out of the operations described in the Schedule where you are required by written contract to obtain this waiver from us. This endorsement shall not operate directly or indirectly to benefit anyone not named in the Schedule. The premium for this endorsement is shown in the Schedule. (Emphasis added). In the Schedule, the endorsement specified that it applied as follows: (X) Blanket Waiver Any person or organization for whom the Named Insured has agreed by written contract to furnish this waiver. As the Court notes, the endorsement is a standard form promulgated by the Texas Department of Insurance (TDI). See TEX. DEP'T OF INS., TEXAS WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY MANUAL : WC 42 03 04 A (2d reprt. 2011). There is no dispute that Western and its affiliates (the Western entities) were the entities for which Cactus agreed, by written contract, to obtain an endorsement waiving the insurer's subrogation rights. There is also no dispute that Wedel is not listed in the Schedule section of the policy. Accordingly, the endorsement expressly excludes him from being benefitted by the endorsement directly or indirectly.