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On January 6, 2000, Charles H. Nelson was injured while working on a construction project. Ferguson Steel Company was the general contractor on the job. Nelson was an employee of Steel Frame Erectors, Inc., a subcontractor. On the date Nelson was injured, Ferguson and Steel Frame were working on the project pursuant to an informal, unwritten agreement. Later that month, they signed a written agreement in which Steel Frame agreed to purchase and maintain insurance for the duration of the work, with Ferguson as an additional insured.

Steel Frame was a named insured under a Liberty Insurance Corporation commercial general liability policy issued to Duke-Weeks Realty Corporation. The policy contained an additional insured endorsement clause that identified an insured as: "[A]ny person or organization for whom you are performing operations when you and such person or organization have agreed in writing in a contract or agreement that such person or organization be added as an additional insured on your policy." When Nelson filed suit against Ferguson, Ferguson filed for declaratory judgment against Liberty, seeking coverage as an insured under the Duke-Weeks policy. The trial court found in favor of Ferguson; Liberty appealed.

Liberty argued that in order for Ferguson to be covered under the policy, Steel Frame's agreement with Ferguson had to be in writing. Ferguson argued that the oral agreement with Steel Frame was sufficient to establish coverage because the oral agreement was eventually reduced to writing and because it was common practice for Ferguson and Steel Frame to begin working on projects before there were written agreements.

The Court of Appeals of Indiana was not convinced by Ferguson's arguments. It was clear from the policy that Liberty would not insure a party without a dated written agreement in effect at the time of the claimed loss of injury. Even if it was common practice for Ferguson and Steel Frame to commence work before a contract was executed, there was no evidence that Liberty consented to extend coverage under those circumstances. To allow for the creation of coverage by reducing oral agreements to writing after loss had occurred would in effect make coverage retroactive despite the terms of the policy. Therefore, Ferguson was not an additional insured on Liberty's policy on the date Nelson was injured.

The decision of the trial court was reversed, and the case was remanded with instructions to grant judgment in favor of Liberty.