Insurance

Texas law defines a "business pursuit" as incorporating two elements: "(1) continuity or regularity of the activity, and (2) a profit motive, usually as a means of livelihood, gainful employment, earning a living, procuring subsistence or financial gain, a commercial transaction or engagement." Allstate Ins. Co. v. Hallman, 159 S.W.3d 640, 644 (Tex. 2005). CMLP has identified no Texas cases interpreting this test in the context of online publishing out of the home (or elsewhere).

As a general matter, however, Texas courts recognize that "hobbies" are distinct from business pursuits. One court has defined a hobby as "a specialized pursuit, such as stamp collecting, painting, or gardening, that is outside of a person's regular occupation, usually done in a non-professional way as a means of relaxation during leisure time." United Servs. Auto. Assoc. v. Pennington, 810 S.W.2d 777, 779 (Tex. App. 1991). In that case, the insured, a car salesman, bought a horse in order to experiment with new race training methods. The court held that the jury was entitled to view this as a hobby and not a business pursuit, even though the insured admitted that he would have liked to turn the activity into a business in the future.

Therefore, if you live in Texas, you have a good argument that your online publishing activities are not a business pursuit, so long as you can characterize them as a hobby. It will help if your primary motivation for publishing online is not financial gain, and you have other employment.

Note that specific language in a policy might lead a court to a result different from the overall state trend.

Ohio law defines a business pursuit as work "engaged in regularly" which "produce[s] an income." Watkins v. Brown, 646 N.E.2d 485, 488 (Ohio App. 1994). CMLP has identified no Ohio cases interpreting this test in the context of online publishing out of the home (or elsewhere). As a general matter, however, Ohio courts have deemed activities to be business pursuits even when profit was not the primary motive and the amount of money earned was small.

Therefore, if you live in Ohio, you may be in danger of losing coverage for your online publishing activities if you make money from your website or blog, such as through advertisements or a tip jar, unless those activities are temporary or sporadic.

Note that specific language in a policy might lead a court to a result different from the overall state trend.

North Carolina law defines the word "business" in "business pursuit" as "an individual's paramount means of earning a livelihood." North Carolina Farm Bureau Mut. Ins. Co. v Briley, 491 S.E.2d 656, 659 (N.C. App. 1997). CMLP has identified no New York cases interpreting this test in the context of online publishing out of the home (or elsewhere). As a general matter, however, North Carolina courts have declined to include part-time work under the exclusion, at least where the insured also had a separate full-time job.

Therefore, if you live in North Carolina, then you may have a good argument that your online publishing activities are not a business pursuit so long as they do not constitute your primary occupation or source of income.

Note that specific language in a policy might lead a court to a result different from the overall state trend.

New York law defines a "business pursuit" as an activity regularly engaged in with a view toward earning a livelihood or making a profit. In other words, to constitute a business pursuit, there must be two elements: "first, continuity, and secondly, the profit motive." Showler v. Am. Mfrs. Mut. Ins. Co., 261 A.D.2d 896, 897 (N.Y App. Div. 1999). CMLP has identified no New York cases interpreting this test in the context of online publishing out of the home (or elsewhere).

As a general matter, however, the New York courts include nearly all profit-making activities carried out on a regular basis in the category of business pursuits. The activity does not need to be the insured's sole occupation or means of support, but it must be more than merely sporadic or occasional.

Therefore, if you live in New York, you may be in danger of losing coverage for your online publishing activities if you make money from your website or blog, such as through advertisements or a tip jar, unless those activities are temporary or sporadic.

Note that specific language in a policy might lead a court to a result different from the overall state trend.

New Jersey law defines a "business pursuit" as an activity involving "continuity" or "customary engagement" and a "profit motive." Prudential Prop. & Cas. Ins. Co. v. Boylan, 704 A.2d 597, 602 (N.J. Super. 1998). CMLP has identified no New Jersey cases interpreting this test in the context of online publishing out of the home (or elsewhere).

As a general matter, however, the New Jersey courts include nearly all profit-making activities carried out on a regular basis in the category of business pursuits. The activity does not need to be the insured person's sole occupation or means of support, but it must be more than merely sporadic or occasional.

Therefore, if you live in New Jersey, you may be in danger of losing coverage for your online publishing activities if you make money from your website or blog, such as through advertisements or a tip jar, unless those activities are temporary or sporadic.

Note that specific language in a policy might lead a court to a result different from the overall state trend.

Michigan law defines "business pursuits" as follows:

To constitute a business pursuit, there must be two elements: first, continuity, and secondly, the profit motive; as to the first, there must be a customary engagement or a stated occupation; and, as to the latter, there must be shown to be such activity as a means of livelihood, gainful employment, means of earning a living, procuring subsistence or profit, commercial transactions or engagements.

Riverside Ins. Co. v. Kolonich, 329 N.W.2d 528, 530 (Mich. App. 1982). CMLP has identified no Indiana cases interpreting this test in the context of online publishing out of the home (or elsewhere).

As a general matter, Michigan law excludes from the category of business pursuits activities engaged in as a hobby, when financial gain is only a side consideration. For instance, in the Kolonich case (above), a Michigan appellate court reversed a lower court ruling because the insured person's activities -- teaching ceramic classes in her home, firing ceramics pieces, and selling the occasional piece -- could constitute a hobby rather than an enterprise conducted for profit.

Therefore, if you live in Michigan, you may have an argument that your online publishing activities are not a "business pursuit" if you carry them out as a hobby and your primary motivation is not financial gain, even if you make some money from those activities. Additionally, you might be able to argue that your publishing activities are not sufficiently continuous to constitute a business pursuit, if you engage in them sporadically and they are not part of your "customary engagement" or "stated occupation."

Note that specific language in a policy might lead a court to a result different from the overall state trend.