State Farm Fire & Casualty Co. v. Vaughan

We consider, in this case, whether State Farm’s standard homeowners insurance policy’s business pursuits provision excludes coverage for the Vaughans’ claims arising out of the operation of an in-home day care service. We hold that it does and reverse the court of appeals’ judgment, 950 S.W.2d 205, and render judgment that the Vaughans take nothing.

Cynthia Solis operated a licensed child care facility in her home. Solis had a standard homeowners insurance policy that State Farm issued. One day, while purportedly caring for the Vaughans’ infant son, Solis strapped him into a car safety seat,…