Insurance Claim – Coverage

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WI Court of Appeals – District IV

Case Name: Jacob W. Beedle, et al. v. Wisconsin Mutual Insurance Company, et al.

Case No.: 2018AP2147

Officials: Fitzpatrick, P.J., Blanchard, and Kloppenburg, JJ.

Focus: Insurance Claim – Coverage

Jacob Beedle appeals a summary judgment dismissing IMT Insurance Company (“the insurer”) from Beedle’s suit against the insurer and its insured, Pierce Phillips (“the insured”), based on the circuit court’s application of a business exclusion in a homeowner’s insurance policy. While the insured and Beedle were constructing a pole barn together, Beedle was allegedly injured. Beedle alleges that his injury was caused by the insured’s negligence. The insured was primarily employed by a company to construct such barns. However, the particular project that the insured was working on when Beedle was allegedly injured was a side job for the insured that was not part of his primary employment.

Beedle argues that the court erred in concluding that the business exclusion applies here to bar coverage for losses “arising out of or in connection with a business,” the “business” being the insured’s construction of pole barns. Beedle contends that, because the construction project was a side job for the insured and not part of his primary employment, it fell outside the policy’s definition of “business.” We disagree with Beedle and agree with the circuit court. We conclude that a reasonable insured in the position of the insured here would understand that the business exclusion applies to exclude coverage for claims arising out of the activity that the insured was engaged in at the time of the alleged injuries. Accordingly, we affirm.

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Derek A Hawkins is trademark corporate counsel for Harley-Davidson. Hawkins oversees the prosecution and maintenance of the Harley-Davidson’s international trademark portfolio in emerging markets.