Federated Serv. Ins. Co. v. Alliance Constr.Annotate this Case
Danny O'Neall was injured while working for Sadler Line Construction, a subcontractor of Alliance Construction. Sadler had commercial general liability (CGL) coverage with Federated Service Inusrance Company. In the underlying personal injury action, O'Neall sued Alliance and Sadler for negligence. In the instant action, Federated filed a declaratory judgment action against Alliance, alleging that it had no duty to defend or indemnify Alliance against O'Neall's personal injury action. The district court granted summary judgment for Federated. The Supreme Court reversed, holding (1) the parties, by requiring Sadler to name Alliance as an additional insured on its CGL policy, intended that Sadler would insure against loss caused by Alliance's negligence; and (2) Sadler's additional insured endorsement, which provided coverage for liability arising out of Sadler's operations, was broad enough to include coverage for Alliance's negligence even if Sadler was not negligent. Remanded.