Liberty Mutual Fire Insurance Co. v. Clayton
Words & Phrases
Exclusions: Business PursuitsTrial Judge
Sue E. MyerscoughAppellate Judge
FlaumHolding
No coverage for wrongful death lawsuit where insured received regular monetary compensation for her services.Fact Summary
Insurance policy precluded coverage for underlying wrongful death lawsuit where: (1) language of business exclusion covered circumstances of defendant's business as home day care provider; (2) defendant received regular monetary compensation for her services; and (3) infant's death arose out of services provided by defendant as home day care provider
Kellie Glick, without a written or formal agreement, provided childcare for Kaci Clayton's infant daughter, Kenzi Alyse Schuler. Glick received $25 per day when she provided home daycare services. On January 29, 2018, infant Schuler died while in Glick's care.
Kellie Glick held an active insurance policy issued by Liberty Mutual. The policy excluded "bodily injury" ... [a]rising out of or in connection with a "business" engaged in by an "insured." A separate endorsement in the policy also provided that "[i[f an 'insured' regularly provides home day care services to a person or persons other than 'insureds' and receives monetary or other compensation for such services, that enterprise is a 'business.'"
On March 8, 2019, Clayton filed a wrongful death lawsuit in the Circuit Court of Montgomery County, Illinois seeking damages from Glick for her alleged negligence in caring for Schuler on the date of her death. On May 28, 2019, Liberty Mutual filed this action for judgment declaring that an insurance policy they issued to Glick provides no coverage for the wrongful death lawsuit filed by Clayton on behalf of her deceased daughter.