Law360, New York (May 31, 2013, 12:24 PM EDT) -- In a wakeup call to insurers and policyholders alike, the Fifth Circuit Court of Appeals recently extended additional insured coverage beyond the scope of liabilities assumed in an underlying service contract between the policyholder and an additional insured. The Fifth Circuit panel concluded that BP was an additional insured under Transocean's insurance policies with respect to subsurface pollution arising out of the Deepwater Horizon oil spill, even though Transocean agreed to assume only liabilities arising from surface pollution and agreed to extend additional insured coverage to BP "for liabilities assumed by [Transocean] under the terms of this Contract."...