The earlier discussions on the Section I portion of the form can be found beginning here. This discussion covers exclusions for Coverage E and Coverage F. There are three different components to this section: exclusions that apply to both Coverage E and Coverage F, exclusions that apply only to Coverage E, and exclusions that apply only to Coverage F.

E. Coverage E – Personal Liability And Coverage F – Medical Payments To Others Coverages E and F do not apply to the following:

1. Expected Or Intended Injury "Bodily injury" or "property damage" which is expected or intended by an "insured", even if the resulting "bodily injury" or "property damage":

a. Is of a different kind, quality or degree than initially expected or intended; or b. Is sustained by a different person, entity or property than initially expected or intended. However, this Exclusion E.1. does not apply to "bodily injury" or "property damage" resulting from the use of reasonable force by an "insured" to protect persons or property;

2. Business

a. "Bodily injury" or "property damage" arising out of or in connection with a "business" conducted from an "insured location" or engaged in by an "insured", whether or not the "business" is owned or operated by an "insured" or employs an "insured". This Exclusion E.2. applies but is not limited to an act or omission, regardless of its nature or circumstance, involving a service or duty rendered, promised, owed or implied to be provided because of the nature of the "business". b. With respect to other than "home-sharing host activities", this Exclusion E.2. does not apply to:

(1) The rental or holding for rental of an "insured location";

(a) On an occasional basis if used only as a residence; (b) In part for use only as a residence, unless a single-family unit is intended for use by the occupying family to lodge more than two roomers or boarders; or (c) In part, as an office, school, studio or private garage; and

(2) An "insured" under the age of 21 years involved in a part-time or occasional, self-employed "business" with no employees;

3. Professional Services "Bodily injury" or "property damage" arising out of the rendering of or failure to render professional services; 4. Insured's Premises Not An Insured Location "Bodily injury" or "property damage" arising out of a premises:

a. Owned by an "insured"; b. Rented to an "insured"; or c. Rented to others by an "insured"; that is not an "insured location";

5. War "Bodily injury" or "property damage" caused directly or indirectly by war, including the following and any consequence of any of the following:

a. Undeclared war, civil war, insurrection, rebellion or revolution; b. Warlike act by a military force or military personnel; or c. Destruction, seizure or use for a military purpose. Discharge of a nuclear weapon will be deemed a warlike act even if accidental;

6. Communicable Disease "Bodily injury" or "property damage" which arises out of the transmission of a communicable disease by an "insured"; 7. Sexual Molestation, Corporal Punishment Or Physical Or Mental Abuse "Bodily injury" or "property damage" arising out of sexual molestation, corporal punishment or physical or mental abuse; or 8. Controlled Substance "Bodily injury" or "property damage" arising out of the use, sale, manufacture, delivery, transfer or possession by any person of:

a. A Controlled Substance as defined by the Federal Food and Drug Law at 21 U.S.C.A. Sections 811 and 812; or b. Any "cannabis" regardless of whether such "cannabis" is considered a Controlled Substance. Controlled Substances include but are not limited to cocaine, LSD and all narcotic drugs. However, this exclusion does not apply to the legitimate use of prescription drugs by a person following the lawful orders of a licensed health care professional.

Exclusions A. "Motor Vehicle Liability", B. "Watercraft Liability", C. "Aircraft Liability", D. "Hovercraft Liability" and E.4. "Insured's" Premises Not An "Insured Location" do not apply to "bodily injury" to a "residence employee" arising out of and in the course of the "residence employee's" employment by an "insured"

Analysis

The exclusions are straightforward. The first exclusion is for expected or intended "bodily injury" caused by the insured, even if the resultant injury is of a different kind, quality, or severity than expected or intended; or if it is sustained by a different person, entity, or property than expected or intended. For example, an insured is at a bar and has a disagreement with another patron; the insured aims a punch at that patron but misses and hits an innocent bystander. The insured intended to injure the party he disagreed with; even though he struck another party accidentally, injury was intended, so there is no coverage for the injured party. Or if the insured went to hit someone with an empty beer bottle just intending to cause a bruise but the bottle breaks and cuts the person, that is also excluded.

Reasonable force

There is an exception to this exclusion for reasonable force used to protect a person or property from harm or damage. An insured may push someone out of the way of an oncoming vehicle, and that person sprains an ankle and breaks a wrist from the fall. The insured was trying to protect the person from being hit by the vehicle, so coverage would be available. Remember, the liability portion of the policy applies not only at the residence premises, but also when the insured is away from the premises.

Business

Activities of the insured related to a "business" the insured engages in are excluded, whether or not the business is owned or operated by the insured or is run out of the insured's residence. If an insured works for a company, that company should have its own insurance policy. Likewise, if the insured owns a company, he should have separate insurance for that.

There are a few exceptions. The changes to these exceptions make it clear that "home-sharing host activities" are not part of the "business" exceptions. The rest of the exceptions have stayed the same. The home-sharing exceptions apply to the rental or holding for rental of an "insured location" on an occasional basis if used only as a residence, or in part for use only as a residence unless a single-family unit is intended for use by the resident family to lodge more than two roomers or boarders, or in part as an office, school, studio, or private garage. So an insured can rent out the basement for someone else to use as a photography or dance studio or small business office. In these situations, it is others who are conducting the business, not the insured. The exception also applies if an insured rents out a room to a roomer or boarder; a single person might welcome some company and rent a room to a college student.

Another exception to "business" is for an "insured" under the age of 21 who is involved in a part-time or occasional self-employed business with no employees. For example, a teenager might have a babysitting, dog-walking, or lawn mowing business.

Professional services

Professional services are excluded because they should be covered by a policy designed for those services. Professional services include but are not limited to attorneys, insurance producers, physicians and nurses, CPAs, and others.

Rented location

If the premises on which the injury or damage takes place is owned by or rented to an insured, or is rented to others by an insured, and is not an "insured location", then there is no coverage. Remember that an "insured location" includes the "residence premises", other premises used as a residence that are shown in the dec or acquired during the policy period as a residence, locations where the insured is temporarily residing, owned or rented vacant land other than farmland, cemetery plots, land on which the insured is building a residence for himself, or part of a premises occasionally rented to an insured for other than "business" use. So if an insured has a "business" teaching blacksmithing and rents a neighbor's garage to conduct this business, there is no coverage if a student is injured. Or, if an insured owns some farmland on which he raises a few cows and chickens, and a friend is injured while visiting that property, there is no coverage.

War

War is the next exclusion; it includes "bodily injury" or "property damage" caused directly or indirectly by war or similar actions, such as undeclared war, civil war, insurrection, rebellion, revolution, warlike acts by a military force or personnel, destruction, seizure or use for a military purpose. Discharge of a nuclear weapon can cause such extensive injury or damage that it is considered a warlike act even if the discharge is accidental.

Diseases

Communicable diseases are excluded, as are "bodily injury" or "physical damage" arising out of sexual molestation, physical or mental abuse, or corporal punishment. Though communicable diseases are not usually spread for the purpose of infecting others, abuse is an intentional act with the goal of causing harm to others.

Controlled substances

Controlled substances are the last exclusion in this section. Excluded is any "bodily injury" or "property damage" arising out of the sale, manufacture, delivery, transfer, or possession of a Controlled Substance as defined by the Federal Food and Drug Law at 21 U.S.C.A. Sections 811 and 812; or any "cannabis" whether or not "cannabis" is considered a Controlled Substance. The reference to "cannabis" is new in the 2022 form. In the description of what includes a Controlled Substance, the reference to marijuana has been removed, but the references to cocaine, LSD, and all narcotic drugs remain the same. An exception exists for an insured following the lawful orders of a healthcare professional for the legitimate use of prescription drugs.

Vehicles

The section ends with exceptions to the motor vehicle, aircraft, hovercraft, and insured's premises not an "insured location" for "residence employees" acting in the course of their employment. If the nanny causes an accident at the grocery store while buying food for the children in her charge, injuries to other shoppers would be covered since the nanny was acting in the scope of her employment.

F. Coverage E – Personal Liability Coverage E does not apply to:

1. Liability:

a. For any loss assessment charged against you as a member of an association, corporation or community of property owners, except as provided in D. Loss Assessment under Section II – Additional Coverages; b. Under any contract or agreement entered into by an "insured". However, this exclusion does not apply to written contracts:

(1) That directly relate to the ownership, maintenance or use of an "insured location"; or (2) Where the liability of others is assumed by you prior to an "occurrence"; unless excluded in a. above or elsewhere in this Policy;

2. "Property damage" to property owned by an "insured". This includes costs or expenses incurred by an "insured" or others to repair, replace, enhance, restore or maintain such property to prevent injury to a person or damage to property of others, whether on or away from an "insured location"; 3. "Property damage" to property rented to, occupied or used by or in the care of an "insured". This exclusion does not apply to "property damage" caused by fire, smoke or explosion; 4. "Bodily injury" to any person eligible to receive any benefits voluntarily provided or required to be provided by an "insured" under any:

a. Workers' compensation law; b. Non-occupational disability law; or c. Occupational disease law;

5. "Bodily injury" or "property damage" for which an "insured" under this Policy:

a. Is also an insured under a nuclear energy liability policy issued by the:

(1) Nuclear Energy Liability Insurance Association; (2) Mutual Atomic Energy Liability Underwriters; (3) Nuclear Insurance Association of Canada; or any of their successors; or

b. Would be an insured under such a policy but for the exhaustion of its limit of liability; or

6. "Bodily injury" to you or an "insured" as defined under Definition 9.a. or b. This exclusion also applies to any claim made or suit brought against you or an "insured" to:

a. Repay; or b. Share damages with; another person who may be obligated to pay damages because of "bodily injury" to an "insured".

Analysis

The exclusions applying to Coverage E alone have not changed from the previous form. The first exclusion is for liability for loss assessments charged against the insured as a member of an association, corporation, or community of property owners outside of the limited coverage provided under Additional Coverages.

Loss assessment

Under Additional Coverages, there is $2000 available for assessments made against the insured as owner or tenant of the "residence premises" under certain parameters, which will be discussed in that section. Likewise, liability under any contract or agreement the insured enters into is excluded as well, other than written contracts relating to the ownership, maintenance, or use of an "insured location," or where the liability of others is assumed by the insured before an "occurrence" unless it is excluded under the loss assessment or another part of the policy.

For example, an insured hires a landscaping company to tend the yard because he frequently travels for work. The insured enters into a contract with the landscaper. Since that contract is related to the maintenance of the "insured location", the exclusion for contract liability does not apply.

Insured's damaged property

If an insured's property is damaged, he cannot collect coverage under the liability section of the policy; an insured cannot be liable to himself. Property coverage is in Section I of the policy, so it is excluded in Section II. "Property damage" and expenses incurred by an "insured" or others to repair, replace, restore, or maintain the property in order to prevent injury to a person or damage to property of others, whether or not away from an "insured location," are excluded.

In care of

Also excluded is damage to property rented to, occupied by, used by, or in the care of an "insured". The exclusion does not apply to "property damage" caused by smoke, fire, or explosion. If a fire breaks out and damages property the insured has rented or is using, then the liability coverage still applies.

Employees

It is not unusual for insureds to have domestic employees who perform certain tasks around the house. Anyone hired by the insured who is eligible for certain employment benefits is excluded from coverage under the liability section of the policy. If the employee is covered or could be covered under workers compensation, a non-occupational disability law, or an occupational disease law there is no coverage here.

Nuclear energy policy

Likewise, if the insured is covered under a nuclear energy liability policy issued by the Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters, Nuclear Insurance Association of Canada or any successors of those organizations, or those policy limits have been exhausted, there is no coverage.

Injuries to insureds

If an "insured" or the named insured sustains "bodily injury" as defined, it is excluded, as is any claim made or suit brought against the "insured" to repay or share damages with another person who may be obligated to pay damages because of injury to an "insured". For example, a mother takes her son to a local park with some rides for children. While she is talking to another parent, her son unsupervised gets on the merry-go-round, falls off, and sustains injuries. The mother sues the park, which then counter-sues alleging negligent supervision. The court finds the mother twenty-five percent liable. She cannot claim for this under the homeowners policy since that would be sharing damages with the park.

G. Coverage F – Medical Payments To Others Coverage F does not apply to "bodily injury":

1. To a "residence employee" if the "bodily injury":

a. Occurs off the "insured location"; and b. Does not arise out of or in the course of the "residence employee's" employment by an "insured";

2. To any person eligible to receive benefits voluntarily provided or required to be provided under any:

a. Workers' compensation law; b. Non-occupational disability law; or c. Occupational disease law;

3. From any:

a. Nuclear reaction; b. Nuclear radiation; or c. Radioactive contamination; all whether controlled or uncontrolled or however caused; or d. Any consequence of any of these; or

4. To:

a. A "home-sharing occupant"; or b. Any person, other than a "residence employee" of an "insured", regularly residing on any part of the "insured location".

Analysis

The exclusions to medical payments are straightforward, with one minor change from the prior form. The purpose of this coverage is to provide payment for those injured on the insured's premises or because of the insured's actions. Coverage is not provided to "residence employees" if the injury occurs off the "insured location" and does not arise out of the employee's employment. If the gardener has gone to the amusement park for the day and is injured, there is no coverage. Likewise, anyone eligible for coverage either voluntarily provided or required by law under a workers compensation, nonoccupational disease, or occupational disease law is excluded.

Nuclear reaction

Injuries resulting from any nuclear reaction, radiation, or radioactive contamination, whether controlled or uncontrolled, are also excluded. As discussed earlier, nuclear hazards are extreme, and this policy is not designed to cover those hazards or the aftereffects of exposure.

Home-sharing occupant

A new exclusion has been added for a "home-sharing occupant". "Home-sharing host activities" are excluded as a "business", therefore any injuries resulting from that "business" are excluded as well.

Injury to residents

Lastly, injuries to anyone other than a "residence employee" who lives on any part of the "insured location" are excluded. The policy is designed to provide coverage to those not related to or living with the insured. Someone living on the premises should be aware of any inherent hazards of the dwelling. Includes copyrighted material of Insurance Services Office, Inc., with its permission.