SW Legal studies in Business

Homeowners Insurance Does Not Cover Business-Related Injury at Home
Description Appeals court affirmed that the "business activities" exclusion in a homeowners policy applied to a suit filed by a worker who suffered an injury when working on the property of the homeowner on facilities to be used for business purposes.
Topic Insurance
Key Words Homeowner Protection; Business Activity; Indemnity
C A S E   S U M M A R Y
Facts The Bowmans owned a home covered by Allstate homeowners' insurance. The policy excluded coverage for "bodily injury or property damage arising out of the past or present business activities of an insured person." The Bowmans built a horse barn and riding arena on their property to provide horse riding lessons and horse boarding services. During construction, a worker was injured. He sued the Bowmans for his injuries. Allstate denied coverage because of the "business activities" exclusion. The Bowmans sued, contending Allstate had a duty to indemnify them under the policy. The district court held for Allstate. The Bowmans appealed.

Affirmed. The business activities exclusion applies to the insureds' liability for injuries suffered by a construction worker working on facilities to be used for business purposes. Even though the injury did not result directly from services provided by the horse business, the injury was related to the production of business activities.

Citation Bowman v. Allstate Insurance Co., 238 F.3d 468 (2nd Cir., 2001)

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