Group Voyagers, Inc. v. Employers Insurance

MEMORANDUM **

Group Voyagers, Inc. (“GVI”) appeals the district court’s grant of summary judgment in favor of Employers Insurance of Wausau (“Wausau”). We have jurisdiction *741 under 28 U.S.C. § 1291 . We review the district court’s decision de novo, HS Services, Inc. v. Nationwide Mut. Ins. Co., 109 F.3d 642, 644 (9th Cir.1997), and we affirm.

At issue is an “employee benefits liability” (“EBL”) endorsement in Wausau’s commercial general liability policy. Under the EBL endorsement, Wausau defends suits for losses “as a result of any negligent act, error or omission that occurs in the ‘administration’ of [the insured’s] ‘employee benefits program.’ ” We agree with the district court that—given the allegations in the underlying action Scherrer v. Group Voyagers, Inc. et al, Civ. No. 99-04834SI, and the undisputed evidence of GVI’s intention to deny retirement benefits to tour directors—the underlying action created no potential for coverage so as to create a duty to defend.

Ever since its pension plan was established, GVI has consistently maintained that pension benefits would only be provided to associates and not to tour directors. That is, it readily acknowledges that it has…