Risk and Liability of Equine Enterprises

All of us think about insurance for our homes and cars, but most of us forget about insuring our animals.  Most horse owners think that their home insurance includes horse activities, but find out differently once a tragedy happens on their farm.  That is because most home insurance does not include claims from business activities.  It’s a good idea to check with your insurance provider to make sure you are covered for the horse activities that you are involved in.  You also want to make sure you are covered if your horse gets out of the fence and into the road where a car might hit the animal or if you take your horse to a horse show and it kicks someone.  Animals are unpredictable and there are lots of different situations and scenarios that can play out.  There are many different types of equine enterprises that need to think about insurance such as boarding, breeding, transportation, training, racing, and niche businesses.

The different types of insurance are:

•        Animal medical/mortality/theft/fertility/lose of use
•         Farm/Ranch Owners
•         Commercial Equine Liability
•        Care, Custody, & Control Liability

Major Medical Coverage provides you with reimbursement for the cost of medical and/or surgical bills caused by accident or disease.  Full Mortality and Theft insurance insures your animals against death arising from any injuries, illness, disease, transportation, or theft.  Stallion Infertility insurance provides coverage in case your stallion becomes permanently unable to produce offspring because of an accident or disease.  Loss of Use insurance will compensate you if your horse becomes permanently unable to perform the duty that you have it insured for.

Farm and Ranch insurance can protect you from fire and theft of barns, dwellings, farm buildings, stables, and riding arenas.  It can also cover computers, equipment, medication, vitamins, and tack. 

Commercial Equine Liability insurance protects horse trainers and instructors.  It covers bodily injury and property damage from business activities such as breeding, boarding, clinics, instruction, sales, and training. 

Care, Custody, and Control Liability insurance provides protection to those who care or board horses.  This might include claims from horse injury from trying to jump a fence, horses that die in a barn fire, horse death from eating poisonous substances, and broodmares that get injured and lose their foals.

These types of insurance can be pricey, but they are essential for any equine enterprise.  You will need to factor the cost of insurance into the fees that you charge your clients.

The North Carolina Horse Council has partnered with the American Horse Council for value added services such as a discounted rate on a million dollar insurance policy.  They also sell liability signs that need to be posted at entrances and gates to premises, riding arenas, trails, etc.  You can order them from:  http://www.nchorsecouncil.com/store  When hiring Certified Public Accountant and Attorneys, its important that they understand the horse industry.

Information provided by:  Dr. Mike Yoder, Associate Director & State Program Leader, 4-H/FCS;  Coordinator:  Emergency Programs and Dr. Amy McLean, Assistant Professor & Extension Horse Specialist