The trial court granted summary judgment in favor of American Family Insurance, finding that coverage was precluded under the business-pursuit exclusion in the farm/ranch policy, and the appellate court affirmed this judgment.
Excerpt
Summary judgment for insurer proper where business-pursuit exclusion precluded coverage for losses resulting from insured's failure to control fire during barn demolition for neighbor. Exclusion applied even if work not performed on behalf of insured's employer and despite fact that he waived fee and earned no profit. Negligent performance of project did not render activity "non-business." Reply brief in support of co-defendants' motion for summary judgment was not motion requiring ruling by court.
What This Ruling Means
# American Family Insurance v. Phillips: Court Ruling Summary
## What Happened
A man was helping his neighbor demolish a barn without pay. During the demolition, a fire broke out and caused damage. The man's homeowner's insurance company, American Family Insurance, refused to cover the losses, claiming the work fell under a "business-pursuit exclusion"—meaning activities done for business purposes aren't covered by standard homeowner policies, even if unpaid.
## What the Court Decided
The court sided with the insurance company. The judge ruled that the barn demolition counted as a business activity, so the exclusion applied. The fact that the man wasn't paid and worked for a neighbor rather than an employer didn't change this conclusion.
## Why This Matters for Workers
This case shows that homeowner's insurance policies may not cover injuries or damage that occur during work-related activities, even unpaid volunteer work. If you're doing construction, demolition, or similar projects—paid or unpaid—you may not be protected by standard homeowner's insurance. Workers should discuss coverage with their insurance agent before starting projects.
This summary was generated to explain the ruling in plain English and is not legal advice.
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