Michael is a collector of antique sports memorabilia, such as baseball cards, jewelry, and autographed baseballs. He also teaches an adult education course at ta local school, concerning sports memorabilia as an investment. Michael sells his collectibles at various fairs and shows and occasionally on the Internet.

Michael owns a home that is insured with an unendorsed HO-3. He has a PC, scanner, and printer that he uses to record his inventory of collectibles, as well as his class information, lectures and business records.

In addition to these activities, Michael also owns a canoe that he uses in a nearby lake.

For each of the exposures listed below, identify whether or not Michael's HO-3 would cover the exposure. If an endorsement to his policy is needed to provide coverage, identify the specific endorsement.

• The collectibles, which have a total value of $25,000
• Michael's liability exposure arising from his teaching job at the school
• Damage or loss to his computer equipment
• Premises exposures, such as slips and falls from customers or delivery personnel who occasionally visit his home
• Injury to other canoers, if there is a collision

Textbook Response:

A Home Business Insurance Coverage endorsement (HO0701) would cover the first four exposures listed in the question. Michael needs to make certain that his business is identified on the endorsement in order to obtain coverage.

Liability coverage for the canoe exposure is mot likely not included in the HO-3 watercraft exclusion, so a Watercraft endorsement (HO 24 75) is not needed.