Georgia Property & Casualty Practice Exam

Which of the following would be recognized as a residence employee under the liability section of a homeowners policy?

1. The insured's CPA who is meeting at the insured's home to review business tax plans.

2. The insured's gardener who lives in a small cottage on the insured's land.

3. The insured who works out of her home.

4. An independent contractor hired by the insured to construct a new addition to the insured's home.

The correct answer is: The insured's gardener who lives in a small cottage on the insured's land.

A residence employee is defined in homeowners policies as an individual who is employed by the insured and whose duties are related to the upkeep, maintenance, or management of the residence premises. This concept is particularly important in determining liability coverage under a homeowners policy. In this instance, the gardener who resides on the insured’s property fits the definition of a residence employee because their duties typically encompass activities such as maintaining the lawn and gardens, which are integral to the upkeep of the property. The fact that they live in a small cottage on the land further emphasizes their status as a residence employee, as it signifies a more permanent and employment-based connection to the insured’s residence. The other scenarios do not meet the criteria for being considered residence employees. For example, a CPA meeting at the insured's home engages in business activities that do not relate to maintenance or management of the residence. The insured who works from home is not considered an employee of their own residence. Similarly, an independent contractor hired for construction is not categorized as a residence employee because independent contractors operate under a different contractual relationship and do not have the employment status needed for such classification under the homeowners policy.