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Article: Business Activities Exclusion in Homeowners Policy Operates to Preclude Coverage for Claim By Injured Worker Building Horse Barn That was to be Used in Policyholder's Side Business. (Recent Court Decisions).(Bowman v. Allstate Insurance Co.)(Brief Article)
- Article from:
- Journal of Risk and Insurance
- Article date:
- September 1, 2001
- Author:
CopyrightCOPYRIGHT 2001 American Risk and Insurance Association, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Bowman v. Allstate Insurance Co., 238 F.3d 468 (2dCir., 2001).
Homeowners insurance typically provides a relatively modest amount of liability coverage (e.g., $100,000, subject to increase by endorsement). Insurers are willing to include this in the coverage with essentially no underwriting of the risk both because of the low policy limits and because serious third-party claims are less likely to arise in a dwelling than in the workplace, on the road, or in a chain of product distribution. Consequently, homeowners insurance also almost always contains an exclusion for "business pursuits" or "business activities" of the insureds. Drawing the line between an ...