Endorsement Makes Supplemental Exclusion an Addition to Policy Wording Even Though Excess Policy “Follows the Form” of the Primary Policy

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After Tile Shop Holdings, Inc. settled multiple lawsuits with its shareholders, it sought indemnification under its directors-and-officers insurance policies. Its excess insurer, Allied World National Assurance Company, denied coverage. Tile Shop sued, but the district court granted Allied’s motion for summary judgment. In Tile Shop Holdings, Inc. v. Allied World National Assurance Company, No. 19-2404, United States Court of Appeals For the Eighth Circuit (December 7, 2020) Tile Shop asked the Eighth Circuit to rule that an Endorsement to a Follow Form Policy was not effective to deprive it of coverage.
ZALMA OPINION

The Eighth Circuit read the policy as an entirety and concluded, as the wording of the policy required, that the endorsement added an exclusion and that the Allied policy provided no coverage for wrongful acts that occurred before August 20, 2012 and that, therefore, it owed nothing to Tile Shop.