SECTION II–WHO IS AN INSURED
1. The declarations lists different types of entities. Who is
an insured is based on the type(s) of entities selected.
a. If
the named insured is an individual, the named insured and his or her spouse are
insureds. They are insureds only with respect to operations of the business the
named insured solely owns.
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Example: Mr. John, a sole proprietor, sells
farm produce. Both he and Mrs. John are insureds. In addition, Mr. John is
the sole proprietor in another venture where he makes wood kitchen cabinets.
Here again, both he and Mrs. John are insureds. However, if he and his
brother own the carpentry business as a partnership, coverage does not apply
to the partnership.
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b. If
the named insured is a partnership or joint venture, that named insured is an
insured. The named insured's members and partners and their spouses are also
insureds. Their status as insureds is limited to operations of the named
insured's business.
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Example: Mr. John and Mr. Joe are partners in a
carpentry business. Both partners and their spouses are insureds with respect
to conduct of the carpentry business. However, none of them are insureds
under this coverage form for any personal exposures or for any other business
activities.
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c. If the named insured is a limited
liability company, the named insured is an insured. Members of the company are
insureds but only when conducting the named insured's business. The named
insured's managers are also insureds but only when performing specific duties
as managers.
d. If the named insured is any other
organization, the named insured is an insured. The executive officers and
directors are insureds while performing their duties as such. Stockholders are
insureds but only in their very limited capacity as stockholders.
e. If the named insured is a trust, the
named insured is an insured. The trustees are insureds but only while
performing duties the trust requires.
2. Each of the following is also an insured:
a. Volunteer
workers but only when performing duties related to the named insured's
business. Employees, excluding executive officers or corporations and managers
of a Limited Liability Company (LLC), are insureds within the narrow range of
activities within the scope of their employment or while conducting the named
insured's business.
(1) Volunteers
and employees are not insureds for bodily injury or personal and advertising
injury:
