I own a horse what do I need to know regarding insurance?

If you own1 horse or 50, it is highly recommended that you obtain a liability policy that provides coverage protecting your personal assets in the event of a law suit brought against you airing from the unique exposure associated with horse ownership. The two most common ways to obtain this coverage is through a personal horse liability policy or a farm/ranch policy that specifies off premises coverage.

Does My Homeowner Policy Cover My Equine Risk?

“I thought I was covered!” Big lawsuits– and lots of suffering! Sure, if a casual visitor gets injured at your home, then your homeowners’ insurance will probably protect you. But if you have any equine operations, you need a farm/ranch policy. Also note that most homeowner’s policies will not cover your equine exposure off premises if you own 1 or 50.

What if I am caring for Horses Owned by Others?

If you board or care for animals and one of them gets hurt an example may be you’re training a $25,000 horse...then the horse gets hurt and needs to be humanely destroyed do you have a commercial liability policy that would cover the cost to replace the horse if you are careless? Unless you also you carry an important coverage referred to in the insurance industry as “care, custody and control” insurance the answer would be “NO”. Property not owned by you but in your care, custody and control is excluded from the basic commercial liability policy. So you may be reaching into your own pocket to replace that $25,000 without “care, custody and control” insurance.

What are equine liability laws, do they protect me?

If there are horses on the property, most states have equine liability laws. Some states and insurance companies require state-specific equine liability signs warning that horses are inherently dangerous, and that a visitor is not a spectator but a participant assuming risk.

It is good risk management, and insurance companies also insist, that that anyone riding or boarding horses on the property must sign an equine liability release waiver. An attorney should review the waiver annually, as state laws may change from year to year. The waiver should include safety regulations, such as requiring people to use helmets and correct safety gear, and prohibiting children from entering the property without a guardian. The laws DO NOT prevent someone from suing you!

Do I need a Farm policy?

A farm insurance policy combines the standard coverage offered by a personal homeowner’s policy with commercial property and liability coverage. The benefit of a farm policy is that it can be customized to your needs even If you own 1 acre or 5000.

Is your property located within 1,000 feet of a fire hydrant? If the answer is no, that's a clue that you need to ask more questions. You also need to ask the following questions if there are more than two or three acres that need coverage:

• Are there additional structures other than a pool house and a garage? Do you have a stable, equipment building or hay barn?
• What kind of animals are on the property and to whom do they belong?
• How many horses are there? Are you accepting money or trading services for friends to keep horses on the property? Even if just a few neighbors are boarding horses, that creates a business exposure. If you have more than one or two personal horses, a homeowner’s policy usually is not adequate.
• Who is working on the property? Is there only an inside domestic or are there people taking care of the horses, other livestock, land and building maintenance? In some states, a workers' compensation policies are required if there are more than two agricultural workers.

Do I need an Excess / Umbrella Policy?

Umbrella liability insurance protects you when accidents happen and your existing liability insurance policies cannot cover all expenses. Standard liability coverage will take care of you in most situations, but when serious situations arise, umbrella liability insurance will help ensure that you’re protected. While no one wants accidents to happen, they do–and people sue. Here are a few possibilities:

• An accident on your farm results in multiple injuries or deaths
• Someone successfully sues you for damages resulting in illness from your products

An umbrella policy picks up where your farm auto liability, general liability or other liability coverage stops. Umbrella insurance is an inexpensive way to provide extra coverage against bodily injury and/or property damage.

For example, if you’re current policy covers you for $1 million and you are successfully sued for $1.5 million, your umbrella coverage can pay the outstanding $500,000 – which is a lot less painful than having it come out of your farm profits.

How much umbrella insurance coverage does your farm need?

A variety of factors goes into determining the answer, including the type of farm you own and how much coverage you already have.

Is my tack covered?

Equipment such as high-value tack should be scheduled and lower-value tack itemized for blanket coverage. There is a higher exposure to theft or damage when people are at competitions away from home.

What about my Barn contents?

Farm property contents are not insured under farm and ranch policies automatically. For example, a lawnmower in a tool shed is automatically covered under a homeowner’s policy. But a farm policy does not cover a $30,000 tractor unless it is specifically scheduled. If you have an office in your barn the contents of that office such as desks, file cabinets, breeding equipment will not be covered unless specifically scheduled or blanketed.