If an "insured" regularly provides home day care services
to a person or persons other than "insureds" and receives
monetary or other compensation for such services, that enterprise
is a "business." Mutual exchange of home day care services,
however, is not considered compensation. The rendering of home
day care services by an"insured" to a relative of an
"insured" is not considered a "business."
Therefore, with respect to a home day care enterprise which is
considered to be a "business," this policy:
1. Does not provide Section II-Liability Coverages because a
"business" of an "insured" is excluded under
exclusion 1.b. of Section II-Exclusions;
2. Does not provide Section I-Coverage B coverage where other
structures are used in whole or in part for "business";
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3. Limits coverage for property used on the "residence premises"
for the home day care enterprise to $2,500, because Coverage C-Special
Limits of Liability- Item 8. imposes that limit on "business"
property on the "residence premises." (Item 8. corresponds
to item 5.in Form HO 00 08.);
4. Limits coverage for property used away from the "residence
premises" for the home day care enterprise to $250, because
Coverage C-Special Limits of Liability- Item 9. Imposes that limit
on "business" property away from the "residence
premises." Special Limit of Liability Item 9. does not apply
to adaptable electronic apparatus as described in Special Limit
of Liability Items 10. and 11. (Items 9., 10. and 11. correspond
to items 6., 7. and 8. respectively in Form HO 00 08.)
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