An insured runs a small in-home tutoring business out of her residence. Which statement is MOST accurate about the homeowners liability for this exposure?

Question

Accepted Answer

Business liability is largely excluded under the base HO; a Business Pursuits or Permitted Incidental Occupancies endorsement is generally needed to extend coverage to the limited home business activity

Answer

Only a commercial general liability policy can ever cover a home-based business, because the homeowners business exclusion applies without exception, even to an insured who tutors one neighbour's child for a small fee

Answer

The base HO-3 Coverage E automatically covers any business-related lawsuit as long as the business is run inside the insured's own residence and takes in less than $50,000 a year in gross receipts from the students it teaches

Answer

Homeowners policies in California are required to include unlimited business liability for any occupation carried on at the insured's residence, so a home tutoring business needs no endorsement or separate policy of any kind

An insured runs a small in-home tutoring business out of her residence. Which statement is MOST accurate about the homeowners liability for this exposure?

Explanation

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