Timothy O’Connor and João Medeiros recently obtained a declaration from the Minnesota federal court that there was no coverage under a homeowners insurance policy for a claim related to a daycare being operated in a home.  The homeowner had not obtained separate insurance coverage for her daycare operations.

The Court found that coverage was excluded under the business-pursuits and care-of-other-persons exclusions of the policy.  The Court also held that coverage was excluded by Minnesota Statutes § 65A.30, a 1996 law that states that there is no coverage under a homeowners insurance policy  for daycare operations.  The statute was passed in order to allow operators of in-home daycares to be able to obtain homeowners insurance despite the significant additional risk associated with such businesses.  This is the first known court decision applying the statute.

Metro. Prop. & Cas. Ins. Co. v. Adamez ex rel. Adamez, No. CIV. 14-3430 DSD/FLN, 2015 WL 1585678 (D. Minn. Apr. 9, 2015).