Huey T. Littleton Claims, Inc. And Huey T. Littleton v. Employers Reinsurance Corporation

E. GRADY JOLLY, Circuit Judge:

Huey T. Littleton Claims Service, Inc., as well as its namesake president, 1 appeals from a declaratory judgment entered in favor of its errors and omissions insurer, Employers Reinsurance Corporation (hereinafter “ERC”). At issue in this controversy is whether Littleton’s E & 0 policy protects it from legal claims that may be brought against it on account of an employee’s embezzlement. A United States magistrate, relying on Jensen v. Snellings, 841 F.2d 600, 615 (5th Cir.1988), concluded that Littleton would be covered should it suffer liability as a consequence…