Thinking of Taking in a Few Boarders? Or Even Starting Your Own Horse Business? You Need Horse Insurance.
Don't overlook horse liability insurance if you own a horse, a horse business, or if you keep horses on your own home property.
Even if you just take in 1-2 boarders on your home property, you expose yourself to substantial liability.
If someone gets kicked, he can sue you. If a horse breaks lose and hurts himself or damages a neighbors property, the horse owner and your neighbors can sue you. If you feed a horse something she turns out to be allergic to, the owner can sue you. If you hurt someone’s feelings when giving her a riding lesson, she can sue you. If the horse you have in training doesn’t progress as fast as the owner wants, he can sue you. You get the picture.
What many horse business owners don’t realize is that their homeowner’s insurance typically won’t cover ANY of these things. There are two ways to protect yourself from this kind of liability. The first is incorporating your business. The second is to carry adequate horse insurance.
THE DIFFERENT CATEGORIES OF HORSE INSURANCE
The first thing you need to understand about horse insurance is that it falls into different categories:
1. Horse trainer professional insurance
This is insurance that covers YOU in your professional activities as a horse trainer or horse riding instructor. So if your student thinks you hurt her feelings or the horse owner thinks his horse should have progressed farther than he has, your professional insurance should help cover you.
2. Property insurance
This is like homeowner’s insurance. It usually covers things like fire or other destruction of your property, barn, and other structures that are owned by your business. Other things, such as machinery, hay and feed, and horse tack can also be covered under this policy.
3. Liability insurance
This is usually bundled with property insurance, like a homeowner’s policy. It covers your liability in events like those mentioned above, such as someone getting kicked, or a horse getting lose and injuring himself or damaging your neighbor’s property. Many insurors have a separate type of policy that is particularly useful to horse business owners called “Care, Custody, and Control”. It covers litigations costs and other costs associated with your liability as a horse business owner.
4. Equine mortality and/or loss of use insurance
This is insurance that reimburses you for the value of your horse if he dies (mortality) or if he is injured/ill and therefore reduces your income. This is like life and disability insurance for a human. It is a good idea for lessons horses because your riding instruction program relies so heavily on their being able to do their job.
5. Equine major medical insurance
This is like health insurance for horses. It can be a life-saver if your horse needs major surgery, such as colic surgery.
6. Workman’s compensation
Some states require businesses to carry workman’s compensation insurance even if the business only employs a single part-time employee. The idea behind workman’s compensation is that their medical and other costs are covered if they are injured while doing their job for you. The premium is usually based on the size of your payroll (what you pay employees) and the risk associated with the industry to which your business belongs. I’m sorry to say that equine businesses are among the HIGHEST in risk, and therefore carry the highest premiums.
WHAT YOUR HORSE INSURANCE COMPANY WILL WANT TO KNOW.
Before writing a horse insurance policy for you, insurance companies want to make sure that you are taking steps to limit liability and liability-related events. This usually takes the following forms:
HOW DO YOU CHOOSE AN AGENT FOR YOUR HORSE INSURANCE?
How do you choose an agent? You can ask your homeowner’s insurance agent to refer you to someone who specializes in equine farm policies. Horse organizations (such as USDF, AQHA, USEF) also can refer you, and some have arrangements with quality insurance companies so that you get a discount if you are a member of the society or organization.
So after you’re sure you understand what horse people in our area want in a boarding training facility, formed a business plan, and decided what the legal structure of your business should be, contact an insurance agent for quotes. Make sure your horse insurance needs are covered!
Copyright Denise Cummins, PhD Jan 2009; Updated Jan 23, 2020; updated June 3, 2024
The Thinking Equestrian
As long as you’re here, check these out!
Recommended Products For Your Horse Business
Stable Management Expenses
How to Structure Your Horse Business to Protect Yourself From Liability
How Much Does It Cost To Keep A Horse?
How to Prevent Horse Barn Fires
If someone gets kicked, he can sue you. If a horse breaks lose and hurts himself or damages a neighbors property, the horse owner and your neighbors can sue you. If you feed a horse something she turns out to be allergic to, the owner can sue you. If you hurt someone’s feelings when giving her a riding lesson, she can sue you. If the horse you have in training doesn’t progress as fast as the owner wants, he can sue you. You get the picture.
What many horse business owners don’t realize is that their homeowner’s insurance typically won’t cover ANY of these things. There are two ways to protect yourself from this kind of liability. The first is incorporating your business. The second is to carry adequate horse insurance.
THE DIFFERENT CATEGORIES OF HORSE INSURANCE
The first thing you need to understand about horse insurance is that it falls into different categories:
1. Horse trainer professional insurance
This is insurance that covers YOU in your professional activities as a horse trainer or horse riding instructor. So if your student thinks you hurt her feelings or the horse owner thinks his horse should have progressed farther than he has, your professional insurance should help cover you.
2. Property insurance
This is like homeowner’s insurance. It usually covers things like fire or other destruction of your property, barn, and other structures that are owned by your business. Other things, such as machinery, hay and feed, and horse tack can also be covered under this policy.
3. Liability insurance
This is usually bundled with property insurance, like a homeowner’s policy. It covers your liability in events like those mentioned above, such as someone getting kicked, or a horse getting lose and injuring himself or damaging your neighbor’s property. Many insurors have a separate type of policy that is particularly useful to horse business owners called “Care, Custody, and Control”. It covers litigations costs and other costs associated with your liability as a horse business owner.
4. Equine mortality and/or loss of use insurance
This is insurance that reimburses you for the value of your horse if he dies (mortality) or if he is injured/ill and therefore reduces your income. This is like life and disability insurance for a human. It is a good idea for lessons horses because your riding instruction program relies so heavily on their being able to do their job.
5. Equine major medical insurance
This is like health insurance for horses. It can be a life-saver if your horse needs major surgery, such as colic surgery.
6. Workman’s compensation
Some states require businesses to carry workman’s compensation insurance even if the business only employs a single part-time employee. The idea behind workman’s compensation is that their medical and other costs are covered if they are injured while doing their job for you. The premium is usually based on the size of your payroll (what you pay employees) and the risk associated with the industry to which your business belongs. I’m sorry to say that equine businesses are among the HIGHEST in risk, and therefore carry the highest premiums.
WHAT YOUR HORSE INSURANCE COMPANY WILL WANT TO KNOW.
Before writing a horse insurance policy for you, insurance companies want to make sure that you are taking steps to limit liability and liability-related events. This usually takes the following forms:
- Evidence that you instruct and take steps to facilitate safety for you, your boarders, and trainers/instructors. For example, do you require that riders on your property wear helmets, especially when jumping? Are there signs plainly posted warning people that horseback riding is a dangerous activity? Are your fences in good repair?
- A boarding/training agreement that makes it clear what is expected from boarders and from you as business owner.
- A hold-harmless agreement that is consistent with the equine laws in your state. One caveat: No one can sign away their right sue in our country. The hold harmless agreement is meant to ensure that someone is aware of the risks involved in horse back riding, and agrees to take part in it anyway. Even though your agreement may say things like “hold harmless against liability”, that doesn’t mean you can’t be sued. You can.
- Proof that the trainers/instructors who work at your facility carry insurance (even if they are independent contractors who are not your employees).
HOW DO YOU CHOOSE AN AGENT FOR YOUR HORSE INSURANCE?
How do you choose an agent? You can ask your homeowner’s insurance agent to refer you to someone who specializes in equine farm policies. Horse organizations (such as USDF, AQHA, USEF) also can refer you, and some have arrangements with quality insurance companies so that you get a discount if you are a member of the society or organization.
So after you’re sure you understand what horse people in our area want in a boarding training facility, formed a business plan, and decided what the legal structure of your business should be, contact an insurance agent for quotes. Make sure your horse insurance needs are covered!
Copyright Denise Cummins, PhD Jan 2009; Updated Jan 23, 2020; updated June 3, 2024
The Thinking Equestrian
As long as you’re here, check these out!
Recommended Products For Your Horse Business
Stable Management Expenses
How to Structure Your Horse Business to Protect Yourself From Liability
How Much Does It Cost To Keep A Horse?
How to Prevent Horse Barn Fires