Appellate Division Rules That Insurer May Owe Coverage For Homeowner Providing Daycare

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The Appellate Division has reversed a trial court decision ordering Bay State Insurance Company to defend and indemnify its insured under a homeowners policy in connection with a personal injury lawsuit alleging that a child was injured while the company’s insured provided daycare services. In reversing the trial court’s decision, the Appellate Division remanded this case for a plenary hearing to ascertain whether or not Bay State’s insured was watching children for a profit motive which arguably would fall under an exclusion for coverage.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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