9 - 1Copyright 2008, The National Underwriter Company Business and Business Activity Insurance What...
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9 - 1 Copyright 2008, The National Underwriter Company Business and Business Activity Insurance What is it? Business Trade, occupation or profession Includes farming, and services performed for others for a fee Does not include part time activities performed by a minor Courts – business involves two elements Continuity or recurring character of activity Profit motive Homeowners policies do not provide liability coverage for bodily injury or property damage arising out of or in connection with a business engaged in by an insured Chapter 9 Risk Management For Financial Planners
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Transcript of 9 - 1Copyright 2008, The National Underwriter Company Business and Business Activity Insurance What...
9 - 1Copyright 2008, The National Underwriter Company
Business and Business Activity Insurance
What is it? Business
Trade, occupation or profession Includes farming, and services performed for others for a fee Does not include part time activities performed by a minor
Courts – business involves two elements Continuity or recurring character of activity Profit motive
Homeowners policies do not provide liability coverage for bodily injury or property damage arising out of or in connection with a business engaged in by an insured
Chapter 9Risk Management For Financial Planners
9 - 2Copyright 2008, The National Underwriter Company
The personal auto policy and business use Policy does not allow for personal vehicle to be used as
“Livery Conveyance” Held out to the public for hire
Provides liability coverage for bodily injury to a domestic employee
Does not preclude coverage if the insured occasionally drives a company car or rents a car for business
Chapter 9Risk Management For Financial Planners
Business and Business Activity Insurance
9 - 3Copyright 2008, The National Underwriter Company
The personal auto policy and business use (cont’d) Fellow employee exclusion (Business auto policy)
Excludes coverage if, while in the course of employment, one employee negligently injures another
Example – Two employees make a business call together in insured’s personal auto
Commercial policy will not respond – insured's personal auto policy will
Chapter 9Risk Management For Financial Planners
Business and Business Activity Insurance
9 - 4Copyright 2008, The National Underwriter Company
The homeowners policy and business activities Some will limit coverage for property used for any
business purpose to $2,500 while on the insured’s premises $250 while the property is away from the insured’s premises
Some business activities can be covered by endorsements to the homeowners policy Permitted incidental occupancies
Incidental to the use of the dwelling as a residence
No liability for anything other than bodily injury and property damage
Chapter 9Risk Management For Financial Planners
Business and Business Activity Insurance
9 - 5Copyright 2008, The National Underwriter Company
Home based businesses Endorsements provide coverage
Effectively function as complete policies Do not provide for specialty coverages
Errors and omissions coverage Workers compensation
Eligibility requirements Business must be owned by the insured Types of Business (varies by insurer)
Office Service Sale of tangible products
Chapter 9Risk Management For Financial Planners
Business and Business Activity Insurance
9 - 6Copyright 2008, The National Underwriter Company
Home based businesses (cont’d) Eligibility requirements (cont’d)
Types of Business (varies by insurer) (cont’d) Sale of craft operations Making and selling consumable products Bed and breakfasts
Property coverage Business property Structures on the property used for the business Property of others in the insured’s care Valuable papers and records
Chapter 9Risk Management For Financial Planners
Business and Business Activity Insurance
9 - 7Copyright 2008, The National Underwriter Company
Home based businesses (cont’d) Liability coverage
Bodily injury or property damage Personal and advertising injury Slander Libel unintentional use of another’s advertising idea or copyright
infringement
Loss of income arising out of a covered loss Workers compensation & professional liability are not
included
Chapter 9Risk Management For Financial Planners
Business and Business Activity Insurance
