Part 2 - Section I Property Coverages & Additional Coverages

Part 3 - Section I Exclusions & Conditions

Part 4 - Section II Liability Coverages & Exclusions

Part 5 - Section II Additional Coverages, Conditions & Endorsements

Topics covered:

Introduction

Eligibility

Definitions

Introduction

The exponential use of instant messaging, email, and the Internet has made it possible for many people to telecommute at least one day per week. Technology has also allowed many entrepreneurs to realize their own version of the American dream by starting their own businesses–particularly home-based businesses. The COVID-19 pandemic showed how easy it was for employees to work from home, and many started their own businesses.

However, many people do not realize that the coverage under the typical homeowners policy is inadequate for covering both personal and business property. Further, there is very little coverage for any liability exposure arising out of business activities. For many of these people, the coverage afforded by the home-based business coverage endorsement will adequately address their needs by giving additional coverage for property used in business, liability coverage for certain activities, and business income coverage.

The ISO Home Business Insurance Coverage form does not address all of the exposures the modern entrepreneur may need. Depending on the business, there are potential gaps in coverage, which may include bailee's coverage, liability arising out of violation of any intellectual property laws, infringement of a copyright or trademark for anything on a Web site, an errors and omissions exposure, and employers liability and workers compensation.

Coverage for these exposures must be obtained from another source—for example, professional liability coverage for IT professionals, E&O for accountants, or workers compensation and employers liability coverage. BOP policies may also provide coverage for certain exposures. But for many home-based business insureds, the coverages of the ISO form will be adequate.

Eligibility

To be eligible for coverage under the home business endorsement, certain criteria must be met. The home business must be owned by the named insured or by a partnership, joint venture, or other organization comprised solely of the named insured and resident relatives. The business must be operated from the residence premises declared on the Homeowners Declarations and be used principally for residential purposes. The business may have up to three employees, and the gross annual receipts of the business may not exceed $250,000.

The home business cannot involve the: manufacture, sale, or distribution of food products; manufacture of personal care products such as shampoo, soap, or the like, applied to the body or consumed; or sale or distribution of personal care products manufactured by the insured applied to the body or consumed.

Certain types of businesses may be ineligible based on company underwriting guidelines. When a permitted business has coverage under the Permitted Incidental Occupancies or Limited Home Day Care Coverage endorsements, that business is ineligible for coverage under the Home Business Insurance Coverage endorsement.

The endorsement is designed for four principal classes of business. The first of these is an office in which functions such as accounting, resume writing, telephone answering, or other administrative or professional services are performed. However, it is important to note that there is no professional liability or errors and omissions coverage, such as an accountant might require, provided by this endorsement.

The second class is a service business, such as videotaping, bicycle repair, or house cleaning. The third class is sale of tangible products, other than crafts made in the home or other structure and sold from the home or other locations, such as books and magazines, costume jewelry, plants and flowers, and stationery. The fourth and final class is the sale of crafts, such as ceramics, dolls, quilts, or related products made in the home.

The endorsement may be used with standard ISO homeowners forms HO 00 02 03 22, HO 00 03 03 22, HO 00 04 03 22, HO 00 05 03 22, HO 00 06 03 22, or HO 00 08 03 22. It cannot be used with form HO 00 14 03 22. While the endorsement provides many coverages in keeping with a small business's needs, the covered causes of loss are those perils in the homeowners to which the endorsement is attached. For example, if the HO 07 01 is attached to an HO 00 02, coverage for business property will be on a named perils basis.

Finally, before examining the definitions in the home-based business coverage form, remember that all of the underlying homeowners provisions and exclusions apply unless otherwise modified by the HO 07 01. For example, definition 3. (business) in the homeowners form is replaced with another definition for purposes of the home-based business coverage.

Definitions

Remember that all of the definitions that are contained in the underlying homeowners form to which this coverage form is attached apply. The following are quoted from the homeowners forms:

2. "Bodily injury" means bodily harm, sickness or disease, including required care, loss of services and death that results.

11. "Motor vehicle" means:

a. A land or amphibious vehicle that is self-propelled or capable of being self-propelled; or

b. Any trailer or semitrailer which is being carried on, towed by or hitched for towing by a vehicle described in 11.a. above.

13 ."Property damage" means physical injury to, destruction of, or loss of use of tangible property.

15. "Residence premises" means:

a. The one-family dwelling where you reside;

b. The two, three or four family dwelling where you reside in at least one of the family units; or

c. That part of any other building where you reside;

and which is shown as the "residence premises" in the Declarations.

"Residence premises" also includes other structures and grounds at that location.

For a discussion of these definitions and all others from the base homeowners form, see ISO Homeowners Definitions Analysis.

The following definitions are found in the home-based business coverage form. They replace the designated homeowners definitions.

Definition 3., which defines "business", is replaced by the following:

3. "Business" means the trade, profession, occupation or activity described in the Schedule of this endorsement that is conducted at or from the "residence premises" and is owned by:

a. You; or

b. A partnership, joint venture or other organization of which you and your resident relatives are the only partners, members or stockholders.

Definition 5., which defines "employee", is replaced by the following:

5. "Employee" includes a "leased worker". "Employee" does not include a "temporary worker".

Definition 9., which defines "insured", is replaced by the following:

9. "Insured" means:

a. You;

b. Residents of your household who are your relatives, but only if they are partners, members or stockholders in your "business"; or

c. A resident of your household, who is not a relative, but is a partner, member or stockholder of the covered "business"

d. Under Section II of this endorsement, "insured" also means:

(1) With respect to the conduct of your "business", any partnership, joint venture or other organization provided those persons described in a. or b. above are the only partners, members or stockholders;

(2) Your "employees", but only for acts within the scope of their employment by you or while performing duties related to the conduct of your "business". However, no "employee" is an "insured" for:

(a) "Bodily injury" or "personal and advertising injury":

(i) To you, to your partners or members (if you are a partnership or joint venture), or to a co-"employee" while that co-"employee" is either in the course of his or her employment by you or performing duties related to the conduct of your "business";

(ii) To the spouse, child, parent or sibling of the co-"employee" as a consequence of (i) above;

(iii) For which there is any obligation to share damages with or repay someone else who must pay damages because of the injury described in (i) or (ii) above; or

(iv) Arising out of the "employee's" providing, or failing to provide, professional health care services; or

(b) "Property damage" to "business" property:

(i) Owned, occupied or used by; or

(ii) Rented to, in the care of, or over which physical control is being exercised for any purpose by;

you, any of your "employees" or, if you are a partnership or joint venture, by any partner or member; and

(3) Any person (other than your "employee") or any organization while acting as your real estate manager.

Under both Sections I and II, when the word an immediately precedes the word "insured", the words an "insured" together mean one or more "insureds".

Analysis

The HO 07 01 amends the homeowners policy by providing additional coverages for the home-based business but also by amending definitions found in the homeowners policy. The definition of "business" is expanded to include the trade, profession, occupation, or activity described in the schedule and conducted at or from the residence premises.

The insured should make the insurer aware of any change in the insured business, whether it be the type of business or a new location, and a new declarations page reflecting the change should be issued.

The homeowners definition of "insured" is amended with respect to the insured business. In addition to the named insured, resident relatives of the household are insured, but only if they are partners, members, or stockholders in the business. The definition is amended only with respect to the insured business, so a resident relative who is not a partner, member, or stockholder is still an insured under the homeowners definition. But if a resident relative who is not a partner, member, or stockholder in the business performs some business function resulting in bodily injury or property damage, that relative is not an insured for business coverage purposes.

The definition of insured is expanded to include the business's employees (up to 3 as allowed by the eligibility requirements). The employees are insureds for acts within the scope of their employment or while performing duties related to the business.

They are not considered an insured for bodily injury or personal and advertising injury to the named insured, partners or members of the insured business, or to a co-employee while that co-employee is in the course of their employment or performing duties related to the business. Also excluded are consequential losses to the spouse, child, parent, or sibling of an injured co-employee.

Coverage for third-party actions, where there is an obligation to share damages with or repay someone else who paid damages because of the injuries above, is excluded. For example, if an injured employee sues someone for their injuries, who in turn sues the insured business, that is excluded. Also excluded is coverage for an employee's providing or failing to provide professional healthcare services. Note that this exclusion only applies to professional healthcare services. If an employee who is not a professional healthcare provider is sued for applying heat to a sprain instead of ice, that action is covered. The insured business would nevertheless be covered even if the employee was actually a professional healthcare provider since the exclusion refers only to the employee.

The form excludes coverage for property damage by an employee to business property owned by, rented to, or in the insured's or employee's care, custody, or control. If an employee damages business property, there is no coverage. However, property damage involving nonbusiness property would be covered. If an employee accidentally caused damage to the residence premises other than the portion occupied by the business, this exclusion would not apply and there should be coverage.

It is important to note that the exclusions under 9.d.(2) apply to Section II (liability). There is coverage for damage to property of others in section I, and there is also an additional coverage for damage to property of others, which will be discussed later.

Lastly, any person, other than an employee, or any organization acting as the named insured’s real estate manager is considered an insured.

19. Additional Definitions

The following definitions are added:

a. "Advertisement" means a notice that is broadcast or published to the general public or specific market segments about your goods, products or services for the purpose of attracting customers or supporters.

b. "Business Income" means the:

(1) Net income (net profit or loss before income taxes) that would have been earned or incurred if no physical loss had occurred, but not including any net income that would likely have been earned as a result of an increase in "business" activities due to favorable business conditions caused by the impact of the Peril Insured Against on customers or on other businesses; and

(2) Continuing normal operating expenses incurred, including payroll.

Analysis

A definition of advertising is added since it is a part of the definition and coverage availability for personal and advertising injury, which will be discussed later.

This business income definition is almost identical to the one found in the ISO Businessowners Coverage Form. A business may be operating at a net loss and still sustain a business income loss. If a negative net loss is not offset by the continuing operating expenses, the insured may collect. If the insured was operating with a net loss of $1,000, and continuing operating expenses were $2,000, then the insured could collect $1,000 (-$1,000 + $2,000 = $1,000). But say the insured is operating with a negative net loss of -$5,000, and continuing operating expenses are $2,000. The sum of (-$5,000 + $2,000 = -$3,000), so the insured would not collect following a loss.

Although the form provides coverage for loss of business income resulting from a covered loss, there is no coverage for increased income that might have resulted because of favorable conditions caused by the peril.

For example, the insured ran a roof repair business. Even if a tornado damaged the business, the business likely would have increased substantially because of the number of people needing to have their roofs repaired following the tornado. Business income coverage will not provide for the favorable business condition in this situation.

c. " Coverage Territory " means:

(1) The United States of America (including its territories and possessions), Puerto Rico and Canada;

(2) Under Section II of this endorsement, "coverage territory" also means:

(a) International waters or airspace, provided the "bodily injury", "personal and advertising injury", or "property damage" does not occur in the course of travel or transportation to or from any place not included in c.(1) above; or

(b) All parts of the world if:

(i) The "bodily injury", "personal and advertising injury", or "property damage" arises out of:

i. Goods or products made or sold by you in the territory described in c.(1) above; or

ii. The activities of a person whose home is in the territory described in c.(1) above when such person is away for less than one month on your "business"; and

(ii) An "insured's" responsibility to pay damages is determined in a "suit" on the merits in the territory described in c.(1) above or in a settlement we agree to.

Analysis

While underlying homeowners forms (except the HO 00 08) cover personal property anywhere in the world, the home business endorsement provides coverage for business property only in the United States, Puerto Rico, and Canada.

Coverage territory includes international waters or airspace under Section II as long as the bodily injury, personal and advertising injury, or property damage occurs while in the course of travel or transportation to or from any place in the US, Puerto Rico, or Canada.

There is worldwide coverage if the bodily injury, personal and advertising injury, or property damage comes from goods or products made or sold by the insured in the US, Puerto Rico, or Canada, or if an insured who lives in the coverage territory is away for business for less than one month. For example, if an employee who resides in the US travels to England to acquire a distributor for their employer’s costume jewelry business and accidentally damages the distributor’s shop, there would be coverage.

There is also worldwide coverage if it is determined that the insured is responsible for damages by a suit brought within the coverage territory.

d. "Extra Expense" means:

(1) Expense incurred:

(a) To avoid or minimize the suspension of "business" and to continue "operations"; or

(b) To minimize the suspension of "business" if you cannot continue "operations";

(2) Expense incurred:

(a) To repair or replace any "business" property; or

(b) To research, replace or restore the lost information on damaged "valuable papers and records";

to the extent that the activities described in (2)(a) and (b) above reduce the amount of loss that otherwise would have been payable under Section I Additional Coverages E.13.c. "Business Income" or E.13.e. "Extra Expense" of this endorsement.

Analysis

This definition is also similar to the one found in the Businessowners Coverage Form. Extra expense is the amount incurred by the insured to minimize the suspension of business and to continue operations. Extra expense may also be expenses incurred to repair or replace any business property but only to the extent this reduces the amount of loss otherwise payable under business income or extra expense coverage.

The coverage may be used for repairing or replacing business property, but the expense must serve to reduce the business income loss. For example, if insured uses this coverage to replace desks and computer equipment that are necessary to their business because property coverage was inadequate. If they spend $5,000 and reduce the business income loss by $2,000, then $2,000 of the $5,000 would be payable under extra expense.

e. "Impaired Property" means tangible "business" property, other than "your product" or "your work":

(1) That cannot be used or is less useful because:

(a) It incorporates "your product" or "your work" that is known or thought to be defective, deficient, inadequate or dangerous; or

(b) You have failed to fulfill the terms of a contract or agreement; or

(2) If such property can be restored to use by:

(a) The repair, replacement, adjustment or removal of "your product" or "your work"; or

(b) Your fulfilling the terms of the contract or agreement.

Analysis

The definition of impaired property is virtually identical to that found in the CGL form, except that impaired property means tangible business property other than the insured's work or product. The coverage is therefore distinguished from that in the underlying homeowners policy. For example, a homeowners insured might repair a recliner for a neighbor. Should the recliner malfunction and cause an injury, the homeowners policy provides coverage. The same insured might operate a small upholstery and furniture repair shop business as described on the declarations of the HO 07 01; in this case, the impaired property definition could become important.

If, for example, the insured businessowner agrees to reupholster a sofa using cotton canvas and instead decides to economize and use polyester. The sofa can be restored to use by the insured's fulfilling the terms of the contract.

f. "Leased worker" means a person leased to you by a labor leasing firm under an agreement between you and the labor leasing firm, to perform duties related to the conduct of your "business". "Leased worker" does not include a "temporary worker".

Analysis

A worker leased to the insured becomes, for coverage and exclusionary purposes, an employee. Though not defined in the policy, the presence of a lease implies a long-term contractual arrangement for the worker's services.

Temporary workers are not included as leased workers and are therefore not insureds. Temporary workers are typically on a short-term basis. The distinction is important for coverage purposes and for the co-employee and employers liability exclusions. If an employee, acting within the course of his duties, negligently injures a temporary worker, then the exclusion for bodily injury to a co-employee would not apply since the temporary worker is not considered a co-employee, and the employee would be covered. If an employee injured a leased worker, then the exclusion would apply.

g. "Loading or unloading" means the handling of property:

(1) After it is moved from the place where it is accepted for movement into or onto a "motor vehicle", aircraft, hovercraft or watercraft;

(2) While it is in or on a "motor vehicle", aircraft, hovercraft or watercraft; or

(3) While it is being moved from a "motor vehicle", aircraft, hovercraft or watercraft to the place where it is finally delivered;

but "loading or unloading" does not include the movement of property by means of a mechanical device, other than a hand truck, that is not attached to the "motor vehicle", aircraft, hovercraft or watercraft.

Analysis

The HO 07 01 definition of loading or unloading is similar to that found in the CGL form except that, in keeping with the Homeowners program, hovercraft have been added. The definition is important to the products-completed operations hazard, which is discussed later.

h. "Operations" means your "business" activities occurring at the "residence premises".

i. "Period of Restoration":

(1) Means for "Business Income" Coverage, the period of time that begins 72 hours after the time of direct physical loss; or

(2) Means for "Extra Expense" Coverage, the period of time that begins immediately after the time of direct physical loss;

caused by or resulting from a Peril Insured Against at the "residence premises"; and

(3) Means the period of time that ends on the earlier of:

(a) The date when the property at the "residence premises" should be repaired, rebuilt or replaced with property of similar quality and with reasonable speed; or

(b) The date when "business" is resumed at the "residence premises";

(4) Does not include any increased period required due to the enforcement of any ordinance or law that:

(a) Requires or regulates the construction, demolition, remodeling, renovation or repair of property; or

(b) Requires any "insured" or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, "pollutants".

The "period of restoration" is not limited by expiration of this policy.

Analysis

There is a 72-hour time deductible for business income coverage where coverage begins 72 hours after the time of direct physical loss, but none for extra expense coverage, where coverage begins immediately after direct physical loss. The extra expense the insured must spend to minimize a business income loss—say renting a new office when her home office is damaged—is covered immediately following the covered direct physical loss or damage to the insured business at the residence premises.

The period of restoration, which is not limited by the expiration of the policy, is the time following a direct physical loss resulting from a covered peril. It ends on the earlier of the date when the property at the residence premises should be repaired, rebuilt, or restored with property of similar quality and with reasonable speed, or the date when business is actually resumed on the residence premises.

Business income coverage will not provide coverage for an increased period due to the enforcement of any ordinance or law either regulating the repair or replacement of the damaged property, or due to the requirement of testing for or removing pollutants.

j. "Personal and Advertising Injury" means injury, including consequential "bodily injury", arising out of one or more of the following offenses:

(1) False arrest, detention or imprisonment;

(2) Malicious prosecution;

(3) Invasion of privacy, wrongful eviction or wrongful entry;

(4) Oral or written publication, in any manner, of material that:

(a) Slanders or libels a person or organization; or

(b) Disparages a person's or organization's goods, products or services;

(5) Oral or written publication of material, in any manner, that violates a person's right of privacy.

(6) The use of another's advertising idea in your "advertisement"; or

(7) Infringing upon an other's copyright, trade, dress or slogan in your "advertisement".

Analysis

Personal and advertising injury includes the standard offenses, as well as consequential “bodily injury” that could arise out of one of the listed offenses. Many of the offenses can result in bodily injury. If an insured falsely imprisons a suspected shoplifter and causes a physical injury in the process, that is considered part of “personal and advertising injury”.

k. "Pollutants" means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed.

Analysis

The definition of pollutants is the same as that contained in the underlying homeowners forms. As will be discussed, there is very little coverage for any bodily injury or property damage arising out of pollutants.

l. "Products-Completed Operations Hazard":

(1) Includes all "bodily injury" and "property damage" occurring away from the "residence premises" and arising out of "your product" or "your work" except:

(a) Products that are still in your physical possession; or

(b) Work that has not yet been completed or abandoned. However, "your work" will be deemed completed at the earliest of the following times:

(i) When all of the work called for in your contract has been completed;

(ii) When all of the work to be done at the job site has been completed if your contract calls for work at more than one job site; or

(iii) When that part of the work done at the job site has been put to its intended use by any person or organization other than another contractor or subcontractor working on the same project.

Work that may need service, maintenance, correction, repair or replacement, but which is otherwise complete, will be treated as completed.

(2) Does not include "bodily injury" or "property damage" arising out of:

(a) The transportation of property, unless the injury or damage arises out of a condition in or on a "motor vehicle" not owned or operated by you, and that condition was created by the "loading or unloading" of that "motor vehicle" by an "insured"; or

(b) The existence of tools, uninstalled equipment or abandoned or unused materials.

Analysis

The products-completed operations hazard is subject to its own aggregate limit of insurance, which is the same as the limit for coverage E shown on the homeowners declarations. The definition clarifies what coverage is provided and what is excluded.

The definition of the products completed operations hazard is similar to that found in the CGL form but it is tailored to the home business to specifically refer to bodily injury and property damage that occurs away from the residence premises, rather than away from premises the insured owns or rents, as in the CGL form.

In order for coverage to apply, the bodily injury or property damage must occur away from the residence premises and out of the insured’s “product” or “work”. The product must not be in the insured’s possession for this coverage to apply. Work that has not been completed or has been abandoned is not covered.

Work is determined to be completed at the earliest of: when all the work called for in a contract has been completed, when all the work is done at a particular job site if the contract calls for work at more than one job site, or when the part of the work at the site is put to its intended use by any other person or organization other than a contractor or subcontractor working on the same project. Work that may need service, maintenance, correction, or repair, that is otherwise complete, is considered completed.

Excluded from the products-completed operations hazard definition and therefore not subject to products-completed operations hazard coverage is bodily injury or property damage arising out of the transportation of property, unless an insured, through loading or unloading a vehicle neither owned nor operated by an insured, created the condition causing the injury or damage.

Also not included is bodily injury or property damage arising out of the existence of tools, uninstalled materials, or abandoned or unused materials. This coverage is meant to provide coverage for the insured’s completed products and work. Tools or unused materials lying around are not the insured’s product.

m. "Suit" means a civil proceeding in which damages because of "bodily injury", "property damage", or "personal and advertising injury" are alleged. "Suit" includes:

(1) An arbitration proceeding in which such damages are claimed and to which an "insured" must submit or does submit with our consent; or

(2) Any other alternative dispute resolution proceeding in which such damages are claimed and to which an "insured" submits with our consent.

Analysis

The definition of a suit includes dispute resolution beyond the courtroom. The insurer must consent to an arbitration proceeding or any other alternative dispute resolution proceeding.

n. "Temporary worker" means a person who is furnished to you to:

(1) Substitute for a permanent "employee" on leave; or

(2) Meet seasonal or short-term workload conditions.

Analysis

It is important for the policy to define a "temporary worker," since they are excluded from being considered "employees" and are therefore not insureds with respect to performing duties related to the insured's business. Temporary workers are either a substitute for a permanent employee on temporary leave, or are present for a short period of time for a particularly busy or seasonal purpose. An insured may have a small business that is particularly busy at Easter and hires an extra person just for a month or two. That person would be a temporary worker. A leased worker, in contrast, is considered to be an "employee" and therefore is an insured.

For purposes of the co-employee and employers liability exclusions the difference is important. If an employee, acting within the course of his or her duties, negligently injures a temporary worker, then the exclusion for bodily injury to a co-employee would not apply, and the worker would be covered. The employer's liability exclusion for bodily injury to an employee would not apply, since the temporary worker is not an employee.

It is not uncommon in a small home business to pay a friend or neighbor to work on a short-term basis. Insureds should be aware that those temporary workers will have no coverage under the policy for any acts carried out that are within the scope of or related to the insured business.

o. "Valuable papers and records":

(1) Means "business" materials such as inscribed, printed, or written:

(a) Documents;

(b) Manuscripts; or

(c) Records;

including abstracts, books, deeds, drawings, films, maps or mortgages;

(2) Does not mean:

(a) Money or securities;

(b) Converted data meaning information that is stored on electronic media that is capable of being communicated, processed or interpreted by electronic data processing equipment; or

(c) Programs or instructions used in your data processing operations, including the materials on which the data is recorded.

Analysis

Only physical records, manuscripts, or documents are covered under valuable papers and records–electronic data is not included, including the materials on which data is recorded. Note that money and securities are not considered valuable paper or records.

p. "Your Product":

(1) Means:

(a) Any goods or products, other than real property, manufactured, sold, handled, distributed or disposed of by:

(i) You;

(ii) Others trading under your name; or

(iii) A person or organization whose business or assets you have acquired; or

(b) Containers (other than "motor vehicles"), materials, parts or equipment furnished in connection with such goods or products; and

(2) Includes:

(a) Warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of "your product"; or

(b) The providing of, or failure to provide, warnings or instructions; but

(3) Does not include:

(a) Vending machines; or

(b) Other property rented to or located for the use of others but not sold.

Analysis

The definition of your product is identical to that found in the CGL form. “Your product” are the insured’s goods and products, other than real property. Containers furnished in connection with the insured’s goods and products are included, but the form makes it clear a motor vehicle is not considered a container for the purposes of this coverage. The insured may have a specific type of package for his goods; that would be considered “your product”.

The definition includes warranties or representations as to the quality, fitness, or performance of the product, and also the providing or failing to provide warnings or instructions. Vending machines or other property that is not sold, but is rented to or located for the use of others, is not covered as the insured’s product.

q. "Your Work":

(1) Means:

(a) Work or operations performed by you or on your behalf; or

(b) Materials, parts or equipment furnished in connection with such work or operations; and

(2) Includes:

(a) Warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of "your work"; and

(b) The providing of or failure to provide warnings or instructions.

Analysis

The definition in the Home Business Insurance Coverage form is identical to that for your work found in the CGL form. The work may be either performed by the named insured or on the named insured's behalf, meaning work performed by a subcontractor for the insured business qualifies as the insured's work. The definition includes materials or parts furnished in connection with the insured's operations or work. Similar to “your product,” work includes warranties or representations, and the providing of or failure to provide warnings or instructions.

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