Q

Our HO 00 03 04 91 insured is a free-lance author. She was scheduled to go to Russia to conduct interviews for a series of articles for a local newspaper.

In preparation for this trip, she purchased a new laptop computer. She loaded her word processing program onto it, in anticipation of using it in Russia .

Unfortunately, before she could make the trip to Russia , the computer was stolen from the insured while she was visiting a friend. As a result, she was forced to cancel her trip. The insurer is offering only $250 for this loss, claiming the computer was “business property” off-premises.

We don't believe that the computer was business property when it was stolen. She only intended to use it in business; but the business use had not yet begun.

What is your opinion?

Illinois Subscriber

A

The HO 00 03 is clear: it places a limit on property “used at any time or in any manner for any 'business' purpose.” It doesn't place the limit on property intended for business use; only on that property that is actually used in business.

Just because your insured intended to use her computer in business doesn't mean that the computer is business property. She may have programmed it to get it ready for her trip to Russia , but she still had not conducted any interviews, nor was any data in it; she had not yet started using it in her business.