Background

Peter and Ann Smiley own and operate the Smiley Window Washing Company. The couple is insured under a Homeowners 3 policy with no special endorsements. The policy has a $100,000 per occurrence limit for personal liability and a $1,000 limit for medical payments to others.

Questions

For each of the following situations, indicate to what extent, if any, the loss is covered under Section II of their homeowners policy. To earn credit, you must please explain why the claim is covered or not covered, and the amount of the payment that would be made, if covered.

1. Peter suspended a scaffold from the side of an office building so that he could wash the exterior windows. Peter left briefly to get some additional window washing supplies.During the period that Peter was gone, a child, age 10, took a ladder that Peter had brought to the worksite, and used it to climb up to the scaffold.The child was seriously injured, when the scaffold is collapsed. Peter is sued by the child's parents for $300,000.

2.The couple's daughter, Emily, age 21, attends college at a small liberal arts university. While playing soccer, Emily made a sliding tackle. Her foot contacted the ball, but her other leg was raised with the cleats showing and she injured the opposing player. The injured player claims Emily was negligent and sues Emily for $50,000. Emily also is injured on the play.She suffered lacerations to her face.Emily incurred a medical bill of $700 for stitches.

3. Ann rents a snowmobile at a ski resort and accidentally collides with a skier. Ann is sued for $200,000 by the injured skier.

4. Cappy, the couples' pet Golden Retriever is a friendly, docile dog and loves people. One morning, Ann carelessly left the backyard gate open, and Cappy escaped from the fenced yard. A neighbor tried to catch the dog, and Cappy bit him on the hand and leg. The neighbor incurred medical bills of $800. Ann is later sued by the neighbor for $70,000 when the dog bite became infected and did not heal.

5. Peter and Ann's 25-year-old son and his new wife, who live in their own apartment, join the couple for a Fourth of July cookout. Their son and daughter-in-law bring ground beef to make hamburgers.The son grills and serves hamburgers to Peter, Ann and six neighbors.All six of the neighbors become seriously ill several hours after the party.The neighbors file suit against the son.They claim he served them contaminated meat, which they claim resulted from his negligent preparation. In their lawsuit, the six neighbors demand compensation for medical expenses, lost wages, pain and suffering in the amount of $180,000 or $30,000 per individual.