1. Forms
2. HO
3. HO-24-71

What the form is

The HO 24 71 Designated Business Pursuits Liability Coverage endorsement is designed to be added to an ISO Homeowners policy. Its primary function is to extend the Personal Liability (Coverage E) and Medical Payments to Others (Coverage F) coverages to specific business activities of an "insured" that would typically be excluded under the standard homeowners policy's business exclusion. The particular business pursuit must be described and scheduled in the endorsement for coverage to apply.

Classes of business it applies to

This endorsement is intended for insureds who are engaged in certain types of business activities, typically as an employee, rather than as an owner or partner in the business. Examples of eligible business pursuits include:

• Clerical office employees
• Salespersons (not owning the business)
• Collectors or messengers
• Teachers (with an option to include liability for corporal punishment)

For instance, a teacher who provides occasional private tutoring outside of their school employment (but not as their own registered business) might use this endorsement. Similarly, someone working as a salesperson for a company, where they are not an owner or partner, could be eligible.

Special considerations

• Business Ownership Exclusion: A critical limitation is that this endorsement does not apply to any business owned or financially controlled by the insured, or in which the insured is a partner. For insureds who own and operate a business from their home, other endorsements like HO 07 01 (Home Business Insurance Coverage) are generally more appropriate.
• Scheduled Pursuits Only: Coverage only applies to the specific business pursuits listed in the endorsement's schedule.
• Corporal Punishment for Teachers: If the insured is a teacher, there's an option to include coverage for liability arising from corporal punishment, but this must be specifically indicated on the endorsement.
• No Coverage for Business Property: This endorsement addresses liability exposures only. It does not provide coverage for business-related property.
• Specific Exclusions: The endorsement may contain its own specific exclusions. For example, coverage might not apply to liability arising from the use of saddle or draft animals in the business pursuit.

Key information for agents and underwriters

• Eligibility Assessment: Agents must carefully determine the nature of the insured's business activities, particularly their employment status (employee vs. owner/partner), to ensure this endorsement is appropriate.
• Distinguish from Home Business Coverage: It's crucial to differentiate HO 24 71 from broader home business endorsements like HO 07 01. HO 24 71 is for specific, often employed, pursuits and does not offer the breadth of coverage (like business property or loss of income) that a dedicated home business endorsement would.
• Risk Assessment: Underwriters should evaluate the specific risks associated with the scheduled business pursuit. The endorsement is generally intended for lower-risk occupations.
• Client Communication: Agents should clearly explain the scope of coverage and, importantly, the limitations of this endorsement to the insured, especially the exclusion for owned businesses.
• Documentation: Ensure the business pursuit is accurately and completely described in the schedule.