Because the Underlying Suits sought to hold AGL liable for injuries that were proximately caused (at least in part) by USIC’s conduct, the “additional insured” requirements in the Umbrella Policy were met.
In Atlanta Gas Light Company et al v. Navigators Ins. Co., Nos. 24-2888 & 24-2889 (7th Cir. Jan. 22, 2026), the Seventh Circuit Court of Appeals assessed whether an upstream contractor was an “additional insured” under an umbrella policy issued to its subcontractor. Atlanta Gas and Southern Company Gas (“AGL”) hired United States Infrastructure Corporation (“USIC”) to locate and mark gas lines that AGL owned throughout Georgia. In 2018, USIC failed to mark a gas line in Homerville, Georgia, and a boring company struck it, leading to an explosion that severely injured three women. The victims settled their claims with USIC but did not come to terms with AGL. AGL eventually did settle with the victims, but only after they sued AGL in Georgia state court (the “Underlying Suits”). AGL’s service agreement with USIC required USIC to obtain primary and excess liability insurance coverage that included AGL as an additional insured. Because USIC’s settlement with the victims exhausted its primary policy, AGL tendered the defense and indemnification of the Underlying Suits to USIC’s excess insurer, Navigators. Navigators denied the request on the ground that AGL was not an “additional insured” under the policy.
Mr. Taylor may be contacted at jtaylor@tlsslaw.com