Alternate Employer Entitled to Worker's Compensation Coverage as an Additional Insured

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In Cal-Dive Intern., Inc. v. Seabright Ins. Co., ___ F.3d ___, 2010 WL 4706221 (5th Cir. (La.) November 22, 2010), the Fifth Circuit Court of Appeals held that an alternate employer is entitled to benefits as an additional insured under an alternate employer endorsement in a workers’ compensation insurance policy.

Coastal contracted with Horizon to provide catering services aboard Horizon’s vessels. Under the contract, Coastal was obligated to defend Horizon for claims arising out of Coastal’s catering services. Coastal employee David Brown was injured while working aboard the M/V AMERICAN HORIZON, and he filed suit against both Coastal and Horizon for failing to provide a reasonably safe place to work. Coastal tendered its defense to Horizon under Coastal’s maritime general liability (MGL) policy from State National Insurance Company (SNIC), but was defended through its own maritime workers’ compensation and employers liability (MEL) policy issued by Seabright Insurance Company.

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