Business Exposures Endorsement—Off-Premises

We have a question about the use of homeowners endorsement HO 04 02 10 00 (permitted incidental occupancies – residence premises). Would this endorsement provide liability coverage for incidental off premises exposures, such as making bank deposits or visiting clients?

Minnesota Subscriber

This endorsement provides only premises liability coverage for the “necessary and incidental” use of the residence premises for a business occupancy that is incidental to the use of the home as a residence. For example, the endorsement would provide coverage for a client who trips and falls on the residence premises. For broader business pursuits coverage, the insured needs to buy coverage under a commercial general liability (CGL) policy. Buying broader coverage would be particularly prudent for someone who visits clients at their places of business or in their homes.

Under older homeowners forms, if the insured bumped into someone in line at the bank and caused them to fall and injure themselves, coverage would have been provided under the exception for activities “ordinarily incident to nonbusiness pursuits.” The removal of this exception has not been addressed in either the homeowners forms or endorsement HO 04 42, so buying CGL coverage seems advisable.