Georgia Property & Casualty Practice Exam

A homeowners policy extends liability coverage for all events except:

1. To host a wedding anniversary party.

2. To host a friend's retirement party.

3. To host a business conference.

4. To host a relative's 100th birthday.

The correct answer is: To host a business conference.

The homeowners policy is designed to provide liability coverage for various events that typically occur within the context of personal and social gatherings. However, when it comes to business-related activities, the coverage provided by a homeowners policy significantly changes. Hosting a business conference falls outside the scope of what a standard homeowners policy is intended to cover. This is because the policy is not designed to address risks associated with business operations or activities that are conducted for profit. Events like a wedding anniversary party, a friend's retirement party, or a relative's 100th birthday celebration are considered personal events, where the risk is associated with a social context rather than a commercial one. Homeowners policies include liabilities tied to typical residential use, which encompasses events where the primary purpose is social and not commercial. Therefore, hosting a business conference would not only increase potential risks that the standard policy does not cover but would also generally require specific business liability insurance to adequately protect against claims that might arise from such an event.