Trotting through the Do’s and Don’ts of Equine Related Insurance

By Karen S. Feigel

Are you unclear about equine-related insurance? It can be overwhelming. But I can help you steer through this. I’m an agent specializing in equine-related insurance, as well as farm and ranch coverage.

First of all, you’ll need to ask yourself some key questions: What type of coverage do you need? Are you conducting commercial or personal activities?

First rule of thumb: if you are accepting money, it’s commercial. Otherwise, it’s personal. But this differentiation can get cloudy. For example: say your neighbor’s child comes over to ride a horse and he gets injured, the injury will most likely be covered under your homeowners insurance – provided you have an adequate homeowners plan. However, if that same child comes over and rides that same horse and you give him a riding lesson on that very same horse, your homeowners insurance is not responsible for that claim unless you notified them ahead of time that you are providing a service on your property. Then they would most likely tell you to either get an equine liability policy, cease the activity, or they will have no choice but to cancel your homeowners insurance policy.

These types of liability plans can be purchased for training facilities, boarding facilities, lesson programs at multiple locations or on site – and can include the property owner as well as the instructor. These policies are known as a CGL, Commercial General Liability policy. A CGL can include day camps, clinics and just about any equine related exposure. These are also available to include coverage for an event and are based on the type of event, horse shows, clinics, and horse fairs etc.

Any event to which the public or spectators are invited should be insured.  This is also available if you are renting or leasing the facility owned by someone else for the event date itself, allowing for some time before and after for set up and take down. The costs for these policies are based on multiple factors: number of spectators, number of participants etc. If a person is conducting seven or eight lessons at their farm per week at a cost of $35 per lesson, $280 per week, don’t take the risk of litigation by saving $50 per month or so – which is probably around the cost of a liability policy to cover your lesson program.

Again, remember the difference between commercial and personal. Don’t fool yourself into thinking because you belong to a saddle club you have a million dollar liability policy. That is not true in a case of anything other than your own personal horse, your pets, or otherwise getting hit by a vehicle or if someone in that vehicle gets injured – or that somebody kicks someone visiting on your farm. That is the only type of thing covered under that free insurance that comes with membership into some clubs. No animals used for any equine business or any equine business exposure are covered under that insurance. Again, no business related risks, only personal.

As for your own personal horses, one thing I see quite often is people who board and depend on the barn owner to have insurance to cover the cost of the horse – should they become injured or die in a barn fire or accident. Unless the barn owner carries care custody and control to cover the loss of animals in his or her care, they do not have any insurance to cover the loss of your horse. It is not automatic, so don’t assume they have it. Ask them.

You can insure the life of your own horse provided he or she is between the ages of 2 and 14 for as little as $150 to $200 per year. If you can afford your horse you can probably afford that small of a premium per year also. Surgical and medical coverage are also available to help with the expense of an accident, injury or illness to your horse, which as a horse owner, you know how expensive that can be. Often times colic surgery benefits are included in the annual premium example I just gave you, and you can also purchase an additional $3,000 in colic benefits for as little as an additional $100 per year.

Another thing to remember: If you aren’t familiar with your auto plan is if you own a trailer and pull it with your truck, it is only covered for liability if you do not have a separate policy on the trailer.  In other words, only the damage to the other guy or the property your trailer damages is covered, not your trailer or its contents. However, if you take out a policy on the trailer itself with your auto carrier, your trailer will be covered as well.

This can be overwhelming. But don’t hesitate to ask an equine insurance company’s rating. You can find plenty of qualified companies to fulfill your business needs. You need to know they will be there when you need them.

Also even your best friend can have a change of heart when an injury happens to their horse or child. The emotions and the expenses can cause any friendship to end in a hurry. But if you have the proper insurance, it will probably never get that far.

In this business for years now, I hear repeatedly how the customer had their insurance with a certain place, but they just didn’t understand – or they weren’t properly advised – so they weren’t properly insured. Shop for your agent just as you would shop insurance companies for your auto. There are only a handful of companies who write equine insurance and it helps tremendously if your agent is also a fellow horse owner who truly understands your needs and concerns.

I once heard that your insurance is only as good as your agent – and I believe that. You need to know that they will be there to represent you when you need their help.

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