Opinion ID: 2833796
Heading Depth: 2
Heading Rank: 1

Heading: The Relevant Agreements

Text: The contract between ATOFINA and Triple S required Triple S to indemnify ATOFINA against personal injuries and property losses sustained during the performance of the contract, unless those losses were attributable to ATOFINA’s concurrent or sole negligence. [2] To that end, Triple S agreed to carry at least $500,000 in comprehensive general liability (CGL) insurance for each occurrence of bodily injury or property damage covered by the indemnity provision. In addition, Triple S was required to maintain at least $500,000 in excess (or umbrella) insurance. The contract between ATOFINA and Triple S specified that the excess policy was to be a “following form” policy, meaning that the excess policy would insure exactly the same types of liabilities as the CGL policy. Finally, Triple S also agreed to name ATOFINA as an “additional insured on both the CGL and excess insurance policies. Triple S purchased $1 million in CGL coverage from Admiral Insurance Company, thus satisfying the primary insurance responsibility under its contract with ATOFINA. The Admiral CGL policy listed ATOFINA as an additional insured but specifically excluded from coverage any liability arising from ATOFINA’s sole negligence. [3] As for excess insurance, Triple S purchased a $9 million policy from Evanston, more than satisfying the minimum coverage requirement of $500,000. The Evanston excess policy contains two relevant definitions of who is an insured under the policy. First, under section III.B.5 of the policy, an insured is [a]ny . . . person or organization who is insured under a policy of “underlying insurance.” The coverage afforded such insureds under this policy will be no broader than the “underlying insurance” except for this policy’s Limit of Insurance. Second, under section III.B.6 of the policy, an insured may also be [a] person or organization for whom [Triple S has] agreed to provide insurance as is afforded by this policy; but that person or organization is an insured only with respect to operations performed by [Triple S] or on [Triple S’s] behalf, or facilities owned or used by [Triple S]. ATOFINA qualifies as an insured under both provisions.