The insured's motion to reconsider an order granting the insurer summary judgment challenges the insured's theory it was an additional insured was rejected by the federal district court. Hanover Ins. Co. v. Superior Labor Servs., 2017 U.S. Dist. LEXIS 133127 (E.D. La. Aug. 21, 2017).
The court previously granted Lexington Insurance Company's motion for summary judgment, finding Allied Shipyard, Inc. was not an additional insured and was not entitled to a defense in the underlying actions. On reconsideration, Allied argued the court ruled it was not a "certificate holder" under the Lexington policy, but Allied was not given the opportunity to conduct discovery with respect to whether it was a "certificate holder." Summary judgment was granted before Allied answered Lexington's amended complaint in intervention. Allied submitted its answer could have raised a genuine issue of material fact because it was entitled to coverage under the policy if it was a certificate holder.
Endorsement 6 of the policy provided insurance for the benefit of the certificate holder included as a person insured. The endorsement did not modify either the "Persons Insured" section nor the definitions of "insured" or "Named Insured" of the Lexington policy. The fact that an entity was a "certificate holder" did not automatically entitle that entity to additional insured status. To enjoy additional insured coverage, the "certificate holder" had to be "included as persons insured."
The court previously found that Allied was not a "person insured" under the Lexington policy. Even if Allied was a "certificate holder," this fact alone would not entitle it to additional insured status under the policy. No additional insured relationship existed where a certificate of insurance was issued identifying an individual or entity as an additional insured without corresponding language in the policy or endorsement that would include that individual or entity as an additional insured. Even if Allied had been allowed time to conduct discovery to locate certificates of insurance and to file an answer, any certificates of insurance would have been immaterial.