Business Use Exclusion Applies to Sales Party?

The policyholder was hosting a Mary Kay make-up party (she was not the consultant, just the host). Once the party was over and the guests were leaving, the claimant ran through the backyard back towards the house to notify another guest that she needed to move her car so she could get her car out.  In the process of running in our policyholder's yard, the claimant fell injuring her ankle-damaged the tendon, received bad bruising, and sprain. Under the HO 3 edition 10 00, bodily injury arising out of or in connection with a business conducted from an insured location whether or not the business is owned or operated by insured or employs an insured is excluded.  Would you consider hosting a Mary Kay make-up party a business?  Our policyholder was not paid to host the party; she received free products and discounts for hosting the event.

North Carolina Subscriber