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Van O'Steen |
All insurance policies contain exclusions and limitations. Insurance companies justifiably are unwilling to provide coverage under basic policies for extraordinary risks. The premiums we pay for these policies are not based on protection for unusual activities. A common provision found in homeowner's policies is one which excludes coverage for injuries or damage arising from "business pursuits." This means that if you are conducting business in your home, and someone is injured in connection with your business activity, your insurance company generally will not represent you or pay any claim made against you. In other words, you probably will be without insurance protection for these claims. In a decision of the Arizona Court of Appeals, a woman who did full-time baby-sitting in her home was denied homeowner's liability coverage for injuries to one of her young wards. Her insurance policy contained the typical business-pursuits exclusion. This woman provided daily child-care services for several families. She charged the parents for these services. Apparently, occasional baby-sitting in your home will not present an insurance problem. In another Arizona case, not involving baby-sitting, our courts defined business pursuit as "a continued or regular activity for the purpose of earning a livelihood, such as a trade, profession, or occupation, or a commercial activity." Profit motive and continuity of the activity must exist before you can be denied insurance protection. If you conduct business from your home, including regular baby-sitting services, you can purchase additional insurance coverage for these activities. You generally may not, however, rely on your basic homeowner's policy. Those who regularly do business from their homes should disclose this fact to their homeowner-or-renter insurance carrier. If additional liability coverage is required, buy it. If you are a parent and you leave your child with baby-sitters outside your home, even those established
in a commercial setting, ask about the nature and extent of the baby-sitter's liability insurance
coverage. Satisfy yourself that they have insurance that will be applicable to These matters can be complicated. If you have doubts or questions, direct them to a lawyer. |
