2 No. 130
   Alexandra Markevics,
   Respondent,
   v.
   Liberty Mutual Insurance Company,
   Appellant, et al.,
   Defendant.
     _________________________________________________________________

   2001 NY Int. 117

   November 15, 2001

   This memorandum is uncorrected and subject to revision before
   publication in the New York Reports.

   Melissa P. Corrado, for appellant.
   Lawrence T. D'Aloise, Jr., for respondent.
     _________________________________________________________________
     _________________________________________________________________

   MEMORANDUM:

   The order of the Appellate Division should be affirmed with costs.

   In this declaratory judgment action, plaintiff Alexandra Markevics
   claims that defendant Liberty Mutual Insurance Co. must defend and
   indemnify Kerry O'Brien pursuant to a homeowner's policy issued to
   O'Brien's parents. The carrier disclaimed coverage based on a
   "business pursuits" exclusion contained in the policy. In the
   underlying personal injury action, Markevics alleges O'Brien served
   liquor to a visibly intoxicated Sandro Perez during his birthday party
   at O'Bie's Bar in Yonkers. After leaving the bar, Perez drove his
   automobile into a utility pole, injuring Markevics, who was a
   passenger in the car.

   O'Bie's Bar was a family enterprise, owned by a closely held
   corporation and operated by Kerry's parents. Twenty-one year old Kerry
   worked there as a bartender and lived at her parents' home. Liberty
   Mutual wrote a "deluxe" homeowner's policy for the O'Briens. In
   addition to coverage for the "insured premises," the policy provides
   personal coverage for liability claims against an insured individual.
   Under the policy, the carrier agrees to indemnify and defend against
   any claim for damages caused by an "occurrence" to which coverage
   applies. Among the exclusions to personal liability coverage are
   injuries arising out of the business pursuits of the insured. The