Exxon loses $25 million insurance coverage battle over umbrella coverage exclusion

The dispute stemmed from an April 2013 explosion at Exxon’s Beaumont, Texas refinery throughout a upkeep mission. Exxon had contracted Brock Companies, Ltd. to offer scaffolding companies. Beneath the service settlement, Brock was recognized as an impartial contractor and was required to acquire insurance coverage protection, together with employees’ compensation, employer’s legal responsibility, and business basic legal responsibility (CGL) insurance policies naming Exxon as an extra insured. Nonetheless, the contract additionally gave Exxon the choice to acquire these coverages on Brock’s behalf, which it did by way of an Proprietor Managed Insurance coverage Program (OCIP). Exxon procured employees’ compensation and employer’s legal responsibility insurance policies overlaying Brock and its workers and deducted the insurance coverage price from funds made to Brock.