It
may be time for you to consider liability insurance:
A common scenario: But could you be liable if a car backfires, the horse spooks and the child is injured?
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The owners of a two-year-old colt were sued when a 10-year-old boy was bitten by
the horse, who was in his own paddock.
A property owner was sued by a man moving two horses from one pasture to
another. The automatic gate accidentally closed on one of the two horses,
causing one of the horses to spook and hurt the handler.
A 16-year-old girl was trying a horse. When she mounted, the horse was startled
by a car, and she was injured when she was thrown. Thousands of dollars were
awarded her in damages.
A man was injured on the grounds of a horse show by a loose horse. The injured
man’s lawyer sued everyone—the show organizers, the owner of the loose horse,
and the trainer of the loose horse. He also sued the boarding stable that fed
the horse that morning before the horse was hauled away to the show
grounds.
This last case may have been an extreme
situation, said Julie Fershtman, the experienced equine attorney who handled the
case, but the reality is that lawyers tend to sue virtually everyone having any
connection to an incident where someone was hurt, forcing people to fight to
extricate themselves from the case.
Even in the case of frivolous claims, defense costs can be enormous in
the absence of insurance coverage.
Lance
Allen, the president of Agri-Risk, says that trainers and owners alike are
growing more aware that the increasingly litigious nature of our society
requires liability insurance coverage to protect their assets.
Types of Coverage
Some
states have taken action by writing equine activity statutes. Typically, the law requires that some of
the statute’s language be posted.
That language—which usually says that an equine professional is not
responsible for the “inherent risks” involved in riding—is printed on a
sign. If the barn owner does not
have this sign up, the statute may not protect her in case of a lawsuit. Your
local feed or tack store should carry the signs for your state. Remember, though, not all states have
statutes in place. Check with your lawmakers.
But
just having the sign will not entirely protect you. Some things don’t count as inherent
risks, such as faulty equipment, or giving an inexperienced rider a green
horse. Even neglecting to warn a
rider about a known obstacle on your land could fall outside the statute. If you’re a riding instructor, the
statute will not protect you if you improperly assign a horse, which would mean
you could be considered negligent.
If
you do any kind of equine work, you need commercial liability insurance to cover
yourself in case you are found negligent. Your equine-related services are a
commodity, which makes you a commercial operation.
Commercial
liability will cover you if someone sues you when they are injured during a
lesson, or when something happens to their property, like a car getting dented
by a runaway horse.
Care,
custody, and control insurance will protect you if you have other people’s
horses in your care, custody, or control.
If you run a boarding stable, take broodmares in to be bred or horses in
for training, this is what you need.
Then, if anything happens to these horses and a court finds you
negligent, you will have insurance to cover the medical bills or the cost of a
new horse. So if someone else’s
broodmare gets tangled in wire and hurt while waiting to be bred to your
stallion, you will be covered. (You
will need another policy for your own animals, though.)
Horse-hauler
liability is only for people transporting horses for profit, not for equine
professionals who are just hauling horses for their clients to the clinic or a
horse show. If you do trailering
for your clients, you can get incidental transit coverage under your care,
custody and control policy, but you likely don’t need a hauler’s
policy.
Personal
liability coverage is for any horse owner who isn’t an equine professional. Let’s say your horse gets loose one day
and races through your neighbor’s yard, tearing down a fence and ruining a
prized garden in the process. You
could be sued for the value of these possessions. Personal liability will protect
you.
It’s
not a bad idea for people who board their horses, either. If your horse kicks a visiting child or
dog, even while you’re away from the boarding barn, you could be liable. Check with your boarding stable to find
out how extensive their coverage is, because you could be liable for something
your horse destroys when you’re not around.
Like it or not, horse farms tend to be attractive to visitors, including uninvited ones.
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Farm
and estate coverage is for your farm, house, and all the tack, tractors, and
sheds on the property. Remember
that most homeowner’s policies draw the line at covering anything that might be
connected with a business. This means that even if you give just a few lessons,
your horses could be considered part of your business, so you need commercial
liability coverage as well.
Horse
show or equestrian event liability is necessary if you (or your group) host a
horse show or an event, whether it is at your own farm or not. These policies, which are often
short-term, provide coverage for the event, the sponsoring organization, event
committee members, officials and event land owners to protect against lawsuits
resulting from harm coming to any event employee, volunteer, or spectator. It also protects you from lawsuits
brought if horses damage property during the event. Imagine if horses at a benefit trail
ride damage crops or other property.
Signs can be a wise move in commercial operations.
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Get an Agent
Your
best ally is a well-educated agent.
A good agent will recommend the right policy for your needs, whether you
run a therapeutic riding center or want to host one benefit show. Because every horse-owning situation is
so different, there is no blanket recommendation for liability insurance—except
that every horse owner should carry it.
To find an agent, look in the advertising
section of any horse publication (except this one). Ask around, because equine insurance
agents often specialize in horse areas of the country, and many of them
ride. Someone may foxhunt or play
polo with a local agent who understands your situation. The agent does not even need to be
local, however. As long as she’s
licensed in your state, and you find her accessible by phone and/or email, she
can help you. Tell your agent your wildest fears—that your sleigh may overturn
during a Christmas rental, or your stallion may nip a visiting broodmare owner
during a farm tour—and she will tell you how you can best to protect yourself.
Bottom Line
We
can’t tell you exactly which coverage you need for your situation nor what the
limit on the policy needs to be. Your agent can help you with that, if you
honestly explain what you do and how you’re making your living with your horse.
Don’t assume your homeowner’s or an umbrella policy will cover your horse
activities. And, even if you win your case, you could be faced with some
incredible legal bills.
For
more information:
Check
out the University
of Texas
website at http://utopia.utexas.edu, and you will find recent cases brought
against horse owners as well as updates on laws.
Julie
Fershtman’s site is at www.fershtmanlaw.com, 248-851-4111.
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