Endorsements & Optional CoveragesQuestion 442 of 474
A homeowner begins caring for five unrelated children for pay. Under the unendorsed policy, that activity is:
a.Excluded, as liability arising out of a business
b.Covered, because the children become insureds
c.Covered, as an incidental use of the household
d.Covered, but only up to the medical payments limit
Explanation
Home day care is a business, and the Section II business exclusion applies to bodily injury arising out of it, so an unendorsed homeowners policy leaves the operation uninsured. The insured needs a home day care endorsement where the insurer offers one, or a separate business policy. Guests injured on the premises are not insureds, and medical payments does not rescue an excluded business exposure.
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Related questions on this topic
- Identity theft expense coverage added to a homeowners policy generally pays:
- A permitted incidental occupancies endorsement is the right answer when the insured:
- On a standard unendorsed form, Coverage B will not cover an other structure that is:
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- An owner of an older home buys increased ordinance or law coverage because the built-in additional coverage:
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