1. Forms
2. DL
3. DL-24-16

What the form is

The DL 24 16 "No Coverage for Home Day Care Business" endorsement is designed to be added to a personal liability policy or the liability section of a dwelling or homeowners insurance policy. Its primary function is to explicitly exclude any liability coverage for bodily injury or property damage that arises from the operation of a home day care business on the insured's premises. This means that if a child is injured while under the care of the insured as part of a home day care service, or if property is damaged due to the day care operations, the insurance policy with this endorsement attached would not provide coverage for those claims.

Classes of business it applies to

This endorsement is relevant for personal lines insurance, specifically for dwelling policies (often used for rental properties or homes that don't qualify for a standard homeowners policy) and homeowners policies where the insured might be conducting a home day care business. It applies in situations where an individual is using their home to provide child care services for a fee.

Real-world example: Sarah has a Dwelling Property policy with a Personal Liability supplement (DL 24 01) for a house she owns and lives in. She decides to start watching a few neighborhood children in her home for a fee to earn extra income. Her insurance company attaches the DL 24 16 endorsement to her policy to make it clear that any incidents related to this home day care business are not covered under her personal liability insurance.

Special considerations

It's important to note that this endorsement specifically removes coverage. If an insured wishes to have coverage for their home day care business, they would need to seek a different endorsement, such as the DL 24 17 "Home Day Care Coverage" endorsement, which would provide specified coverage, likely for an additional premium and subject to its own terms and limits. Some sources indicate that the DL 24 16 endorsement was withdrawn with the 07 14 edition, meaning it may have been replaced or its provisions incorporated into base policy forms or other endorsements in more recent insurance program revisions. Therefore, the availability and use of this specific form number might vary depending on the insurer and the policy edition date.

Key information for agents and underwriters

For Agents:

• It is crucial to ask clients if they are operating any type of business from their home, including a home day care, during the application or renewal process.
• If a home day care is present and the insurer does not intend to cover this exposure under the personal liability section, the DL 24 16 (or a similar exclusionary endorsement) should be added to the policy and clearly explained to the insured.
• If the insured desires coverage for their home day care, agents should discuss alternative endorsements like the DL 24 17 or a separate business policy.

For Underwriters:

• The presence of an undisclosed home day care operation significantly changes the risk profile of a personal liability exposure.
• Attaching the DL 24 16 helps to manage this risk by clearly excluding it, ensuring the policy is priced and rated appropriately for the intended personal exposures.
• If this endorsement is not used and a home day care is operating, the policy might inadvertently provide coverage for a business risk it was not designed for, potentially leading to unexpected losses.
• Underwriters should be aware of the edition date of this form and whether it has been withdrawn or superseded in the specific insurance program being used.