Definition of Business

March 5, 2012

The insured is a retired music teacher who charges $10 a lesson for thirty minutes of her time. The insured said it was not something she makes a lot of money from; she simply enjoys teaching piano. The claimant was at the home for a lesson when the insured's Old English sheepdog jumped up on the student tore the student's ear. Does the definition of “business” apply to this claim and exclude coverage under both the liability and medical payments section?

 

Indiana Subscriber

“Business” is a defined term in the homeowners policy. The policy has an exception for any activity engaged in for money or other compensation for which the insured receives no more than $2,000 in a twelve-month period before the beginning of the policy period. Such activity is not considered a business; therefore coverage applies in this situation unless she earns more than that amount.

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