Watkins v. Brown9/7/1994
ns of the policy should provide her coverage for any liability arising from Danielle's injuries, but CIC contends, on appeal, that it has met its burden of showing that the business exclusion provision applies. It does not contest the trial court's findings of fact, but argues that the court erred as a matter of law in holding that the term "business," as used in the policy, was ambiguous and did not clearly embrace Brown's baby-sitting.
The construction of an insurance contract, like that of any other contract, is a matter of law. Canady v. Cent. Trust Benefits Mut. Ins. Co. (1991), 71 Ohio App.3d 363, 366, 594 N.E.2d 37, 38-39. Courts are required to interpret the contract in such a way as to give effect to the intention of the parties at the time the agreement was entered into, as evidenced by the provisions of the contract. Id. at 367, 594 N.E.2d at 39; Progressive Specialty Ins. Co. v. Eastos(1990), 66 Ohio App.3d 177, 583 N.E.2d 1064. Contract terms are to be given their "natural and usual" meaning if they are not defined in the policy, unless it is clear from the policy that the parties intended to use some specialized or technical definition. Gomolka v. State Auto. Mut. Ins. Co. (1982), 70 Ohio St.2d 166, 172-173, 24 O.O.3d 274, 278-279, 436 N.E.2d 1347, 1351-1352. When a contract term is defined in the policy, that definition controls what the term means. Woods v. Nationwide Mut. Ins. Co. (1978), 295 N.C. 500, 505, 246 S.E.2d 773, 777; Filip v. N. River Ins. Co. (1990), 201 Ill.App.3d 351, 352, 147 Ill.Dec. 17, 18, 559 N.E.2d 17, 18.
Because it is the insurance carrier that typically drafts the policy, where policy language is ambiguous, that language is to be construed in the way that is most favorable to the insured. Am. Financial Corp. v. Fireman's Fund Ins. Co., 15 Ohio St.2d at 173, 44 O.O.2d at, 148, 239 N.E.2d at 35. This general principle applies with even greater force to language that purports to limit or to qualify coverage. Id.; Cincinnati Ins. Co. v. Mosely (1974), 41 Ohio App.2d 113, 116, 70 O.O.2d 127, 128, 322 N.E.2d 693, 696; Thomas J. Lipton, Inc. v. Liberty Mut. Ins. Co. (1974), 34 N.Y.2d 356, 361, 357 N.Y.S.2d 705, 708, 314 N.E.2d 37, 39. If an exclusionary clause will reasonably admit of an interpretation that would preserve coverage for the insured, then as a matter of law, a court is bound to adopt the construction that favors coverage. Lester v. State Farm Mut. Auto. Ins. Co. (1989), 64 Ohio App.3d 52, 54, 580 N.E.2d 793, 795. See King v. Nationwide Ins. Co. (1988), 35 Ohio St.3d 208, 211, 519 N.E.2d 1380, 1383; Bates v. John Hancock Mut. Life Ins. Co. (1978), 6 Mass.App.Ct. 823, 824, 370 N.E.2d 1386, 1387-1388; Gulf Ins. Co. v. Parker Products, Inc. (Tex.1973), 498 S.W.2d 676, 679. However, if an exclusionary clause has only one reasonable interpretation, a court is bound to enforce the provision accordingly. See Progressive Specialty Ins. Co. v. Easton, 66 Ohio App.3d at 180, 583 N.E.2d at 1066-1067.
Brown's homeowner's policy provides liability coverage for "the damages [arising from bodily injury , personal injury , or property damage] for which the insured is legally liable." Excluded from this coverage are damages "arising out of any activities of any insured in connection with a business owned or controlled by any insured." This language unambiguously excludes from coverage any liability arising from activities Brown engaged in that were connected with Brown's own business. The central issue in this case is whether "business," as defined in the policy, adequately describes Brown's baby-sitting activities.
"Business" is described in the definitions section of the policy thus: "business includes but is not limited to any trade, professi
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