Case Explained: LAW OFFICES OF ROBERT B. JOBE, ET AL. V. ZURICH AMERICAN INSURANCE COMPANY

Court: United States Court of Appeals for the Ninth Circuit

Filed: 2026-07-10

Docket: 4:24-cv-06325-YGR

The Ninth Circuit affirmed the district court’s grant of judgment on the pleadings in favor of Zurich American Insurance Company, holding that the Employment Practices Liability Insurance Policy (EPLIP) entitles the insurer to exercise its right and duty to defend a claim prior to the insured’s exhaustion of the self-insured retention (SIR) amount. The court applied California law, determining that the policy’s plain language granting Zurich the “right and duty to defend” is unambiguous and does not contain an implied restriction requiring SIR exhaustion before defense costs are incurred. Furthermore, the court ruled that while the duty to defend generally encompasses payment of defense costs, the specific policy language makes coverage contingent upon the insured’s payment of the SIR, which serves the primary purpose of allowing the insured to contain insurance costs. Consequently, the plaintiffs remain obligated to pay the SIR amount regardless of when Zurich asserts its right to defend, and the judgment in favor of the insurer stands.

Do It For The Case Law is a news reporting service. Nothing in this episode constitutes legal advice.