COURT UPHOLDS BUSINESS EXCLUSION

The Florida Court of Appeals, Second District, on April 20 issued its opinion in First Protective Insurance Co. v. Featherston, upholding the validity of a business exclusion in a homeowners insurance policy.

“This decision recognizes a contract is a contract and that a clearly written exclusion such as the one at issue here clearly precludes coverage” said Robert J. Hurns, legislative database manager and counsel for the Property Casualty Insurers Association of America (PCI), which filed an amicus brief in the case. “The policy clearly stated that coverage was not provided for bodily injury arising out of a business engaged in by the insured. The evidence showed that the insured was providing day care services in exchange for a fee, hence a business was being conducted on the premises.”