Do you need to know about equine insurance options? If horses are a part of your business, you need a commercial equine liability policy, even if you have other coverage that protects you against general liability exposures. Homeowners and standard farmowners insurance policies completely exclude your equine business pursuits. This coverage is designed specifically for all types of horse-related businesses, such as the following:
This Coverage Insights is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.
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- Arenas and stadiums
- Auctions and sales
- Boarding, breeding and training stables
- Carriage and wagon rides
- Guided trail rides
- Horse shows and clinics
- Outfitters and guides
- Polo grounds
- Pony rides
- Racing stables
- Riding instruction
- Therapeutic riding
It is crucial that you purchase this coverage, which will protect you if you are sued by a third party who is injured or whose property is damaged. The policy covers defense costs and pays claims for which you are legally liable, up to the policy limits. Without adequate liability coverage, you could have to pay damages and defense costs yourself, which could be high enough to cause you serious financial hardship or bankruptcy.
Equine Insurance Options Coverage Inclusions
Common commercial equine liability policies cover the following:
- Up to $10 million liability
- $50,000 fire legal liability
- $5,000 medical payments (for the person injured)
- Employees named as Additional Insureds on the policy, extending them coverage
There are several additional options for coverage, including products/completed operations coverage, personal injury and advertising liability, professional liability and additional insured status for independent contractors.
Equestrian Liability Limitation Laws by State
In some states, you may be protected by equine liability laws, which will provide a defense in the event of an incident. However, these laws do not prevent you from being sued. Check your state legislation to understand what limitations apply to you and to what extent you are protected from liability in the event of an incident.
Care, Custody and Control Exclusion
All commercial general liability policies contain an exclusion for property damage to property in the insured’s care, custody and control. This kind of coverage is available through bailee insurance, fire insurance and other types of coverage. This exclusion applies to a boarder’s horse and any tack or equipment that may be left at your premises.
Equine mortality coverage is essentially life insurance for your horse. It covers the loss of a horse for reasons other than your negligence. Some policies include limited coverage for colic surgery, but treatment for injuries and illnesses is covered by the medical and surgical coverage add-on.
Contact your insurance professional at TPG Insurance Services to verify your eligibility for commercial equine liability insurance. Also call us at 909.466.7876 or visit our web page to learn more about our Agriculture Insurance.