PAP Coverage and the Livery Conveyance Exclusion

December 5, 2013

We have an insured that has as her job to take care of intellectually challenged and handicapped persons who live on their own. Most of her work involves helping at her clients' residence, but on occasion she will transport a client to an appointment, the store, etc. My question is, would there be coverage under the ISO 2005 PAP policy for this exposure or would this be excluded either because of the business exclusion or the livery exclusion?

Illinois Subscriber

Neither exclusion would apply. The business exclusion does not apply to the use of a private passenger auto or van and presumably, your insured has this type of vehicle. The livery exclusion does not apply since that exclusion is for vehicles that are used for and cater to the public in general, like a cab. Since your insured only transports a client and not the general public for a fee, the exclusion does not apply to her use of her car.