Opinion ID: 655503
Heading Depth: 3
Heading Rank: 1

Heading: EPL Coverage Under the Main Body of the Weavers Umbrella

Text: 19 The district court held that the Weavers Umbrella did not address EPL claims and that the Weavers EPL Endorsement did not cover the Peterson Claims. We conclude that the plain language in the main body of the Weavers Umbrella itself afforded CU occurrence-based EPL coverage. 20 Section I of the Weavers Umbrella (entitled COVERAGE) states that: 21 [Weavers] hereby agree[s], subject to the limitations, terms and conditions hereinafter mentioned, to indemnify [CU] for all sums which [CU] shall be obligated to pay by reason of the liability 22
23 (b) assumed under contract or agreement by [CU] and/or ... an employee of [CU], while acting in his capacity as such, 24 for damages on account of 25
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28 caused by or arising out of each occurrence happening anywhere in the world [emphasis added]. 29 An occurrence is defined as an accident or a happening or event or a continuous or repeated exposure to conditions which unexpectedly and unintentionally results in personal injury, property damage or advertising liability during the policy period. 30 Section II (entitled LIMIT OF LIABILITY) immediately follows the COVERAGE section, and limits Weavers' liability to the excess of either: (a) the limits of the elsewhere specified underlying insurance [Travelers] policy; or (b) $25,000 ultimate net loss for each occurrence not covered by the specified underlying [Travelers policy], in both cases up to the Weavers Umbrella limits. 5 31 The COVERAGE and LIMIT OF LIABILITY sections must be construed compatibly, Rice Growers Ass'n v. F. Carrera & HNO, Inc., 234 F.2d 843, 846 (1st Cir.1956) (applying general contract principles); cf. Rosen v. A-H, Inc., 17 Mass.App.Ct. 126, 456 N.E.2d 477, 480 (1983), as the latter plainly delimits the former. 6 Thus, under subsection (a), when an occurrence is covered by underlying insurance, the Weavers Umbrella provides excess coverage for losses above the limits of the underlying primary policy. Under subsection (b), however, when an occurrence is not covered by underlying insurance, the Weavers Umbrella drops down and provides primary coverage. 7 For such umbrella coverage to extend, either on an excess basis (per (a)), or on a primary basis (per (b)), the occurrence must be covered under the Weavers Umbrella in the first place. As noted below, however, the Weavers Umbrella defines occurrences very broadly. 32 The main body of the Weavers Umbrella extends coverage for all sums imposed for damages on account of personal injuries or property damage caused by occurrences. But because an umbrella policy does not provide blanket coverage, in its LIMIT OF LIABILITY section the Weavers Umbrella confines the scope of its coverage by means of specific limits and exclusions; e.g., but only in excess of the limits of underlying insurance per (a). Thus, it is not surprising that the COVERAGE provisions in the main body of the Weaver Umbrella make no explicit mention of EPL coverage. Indeed, the broad language of the Weavers Umbrella COVERAGE provisions identifies no particular activity whatever, for the simple reason that coverage under the main body of the Weavers Umbrella is afforded for all activities which result in occurrences for which CU must respond in damages. 33 The parties agree that the Peterson Incident occurred within the Weavers Umbrella policy period. An explosion at an industrial plant plainly constitutes an occurrence within the meaning of the Weavers Umbrella, whose broad language provides that every activity which results in an occurrence for which CU must respond in damages is covered, unless specifically excepted. Nowhere in the main body of the Weavers Umbrella are EPL acts or omissions excepted from coverage, either explicitly or implicitly. Accordingly, we conclude that the main body of the Weavers Umbrella extended indemnification for damages which CU was obligated to pay due to EPL or any other (non-excepted) act or omission.