American International Specialty Lines Insurance v. Rentech Steel, L.L.C.

JENNIFER WALKER ELROD, Circuit Judge:

This case addresses whether an insurance policy that excludes coverage for an “obligation” incurred under “any workers’ compensation law” bars coverage for a judgment that an employee recovers in a negligence action against a Texas employer that does not subscribe to the Texas workers’ compensation system. Because the Texas Workers’ Compensation Act (“TWCA”) imposes no obligation on a non-subscriber to compensate an employee for injuries sustained due to the employer’s own negligence, we find that the exclusion is not applicable. Accordingly, we AFFIRM the…