Meaning of the word "incidental"

[Anthony Cavalea]

I'm a new producer, and when looking at a form I came across the word "incidental" as it pertains to business use. After the from asked if there was a business at the home (answered yes), the next question is: "Is the business incidental to the use of the property?"

I have researched the word "incidental" and this question to death and have not come up with a satisfactory answer. To me, all businesses would be incidental to the use of the home, of which the primary use is a domicile. But I have read other in places that incidental use means the business is there primarily because of the nature of the property. And I have also read that it is incidental if it is only occasional.

Can anybody explain to me how to answer this question (or one like it) as it relates to insurance?

 

[marindependent]

What is the business?
.

 

[Anthony Cavalea]

This is a theoretical discussion. In reality there is no business. Can you please give me an idea of what kind of business or activity would result in each answer? Let's say for the sake of argument it's one of 4 of these: a computer programmer vs real estate agency vs a daycare vs a hairdresser.

 

[adjusterjack]

After the from asked if there was a business at the home (answered yes), the next question is: "Is the business incidental to the use of the property?"

Must be some company's proprietary application. The question is not asked that way on the ACORD homeowners application. A yes answer to the business question requires an explanation.

To me, all businesses would be incidental to the use of the home, of which the primary use is a domicile. But I have read other in places that incidental use means the business is there primarily because of the nature of the property. And I have also read that it is incidental if it is only occasional.

Let's start with dictionary definitions of the word "incidental."

American Heritage Dictionary:

1. Occurring or likely to occur as an unpredictable or minor consequence: synonym: accidental.
2. Of a minor, casual, or subordinate nature.
3. Happening, as an occasional event, without regularity; coming without design; casual; accidental; hence, not of prime concern; subordinate; collateral

Merriam-Webster:

Being likely to ensue as a chance or minor consequence

The answer to the "is the business incidental to the use of the property" is yes, if the business is of an infrequent or inconsequential nature.

Seems counter-intuitive, I know. If a person is running a day care in their home the answer would be no, it's not incidental because it's a regularly operated business.

If you are taking an application from a customer, you would be wise to include an explanation about the business regardless of answer to the "incidental" question.

 

[Markthebroker]

I'm a new producer, and when looking at a form I came across the word "incidental" as it pertains to business use. After the from asked if there was a business at the home (answered yes), the next question is: "Is the business incidental to the use of the property?"

I have researched the word "incidental" and this question to death and have not come up with a satisfactory answer. To me, all businesses would be incidental to the use of the home, of which the primary use is a domicile. But I have read other in places that incidental use means the business is there primarily because of the nature of the property. And I have also read that it is incidental if it is only occasional.

Can anybody explain to me how to answer this question (or one like it) as it relates to insurance?

I googled "Is the business incidental to the use of the property?" and clicked on the first thing that came up. An answer is offered on the first page.

https://www.iii.org/article/insuring-your-home-business

Furthermore, I'll address each of your example questions based on my experience.

A computer programmer - many carriers would be ok with it as there is very little traffic or risk to the home.
Real estate agency if it's high traffic, many carriers will not be ok with it. If it's low traffic, many carriers might ok with it. I can tell you, in general, writing these can be tricky as many carriers are freaked out about the e&o exposure.
Daycare High traffic and may create an issue, furthermore there are children involved, and that opens a whole can of worms many carriers are, and some aren't ok with.
Hairdresser High traffic and may create an issue