Favor for which electrician was paid deemed “business pursuit” under insurance policy exclusion
A journeyman electrician, Holderman, who was employed, performed in a personal capacity a wiring service for friend for $300. The same wiring job eventually caused the death of a guest at the same residence. Holderman submitted the claim to State Farm, with whom he had personal liability provision under his homeowner’s policy.
Said policy excluded coverage for “business pursuits.” Under Indiana law, an insured is engaged in a business pursuit only when he pursues a continued regular activity for the purpose of earning a livelihood. At summary judgment, Judge Miller of the Northern District held that Holderman’s conduct fell under the exclusion since the favor was right in line with his professional responsibilities (thus a continued regular activity) and that he was earning a livelihood since he charged nearly exactly what he would have for any other job.