COVERAGE CORNER
COMPENSATED AND COVERED? AN HO POLICY’S TAKE By Kevin C. Amrhein, CIC The pandemic forced millions to adjust work routines. For too many, it removed work altogether. Some lost full-time jobs. Others gave up lucrative side-gigs due to insufficient demand. Folks will do what it takes to earn. Data show a rise in self-employment efforts and side-gigs that for some will last indefinitely. A few may consider insurance coverage for claims stemming from such activities, most will not. A few will be protected by another entity’s insurance policy, some will not. For those with nowhere to turn, to what extent if any will personal insurance provide cover? In this article, I’ll review ISO’s HO policy forms.
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THE BEST-CASE SCENARIO The insured divulged to you the nature of the income-producing activity and requested commercial insurance which you were able to secure, and now everyone’s happy and could care less about personal lines insurance. Okay, there, I had to say that. Time to move on.
THE LIKELY SCENARIO The insured doesn’t tell you squat about what anyone in his/her household is doing. The insured has not secured nor has access to separate cover for the incomeproducing activity. A claim alleging NOVEMBER 2020
bodily injury, property damage, and/ or personal injury stemming from an income-producing activity is filed against the insured. Now what? The search for coverage begins with the policy’s definition of “business.” In the ISO world, this definition is the same across all HO policy forms. Understanding the two parts of this definition is essential. And now, let us all rise for the reading of ISO HO form language: 3. “Business” means: a. A trade, profession or occupation engaged in on a full-time, parttime or occasional basis; or
