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In this article, we’ll examine the different types of coverage available and how to decide between private and commercial equine liability insurance. Our policy covers bodily injury and property damage, which are important considerations. Let’s look at each type of equine liability insurance policy to determine what is best for your business. We also touch on the cost. Finally, we’ll discuss the differences between commercial and private equine liability insurance and how they affect you and your business.
Coverage
Most homeowner’s insurance policies exclude coverage for equine activities, but not all policies specifically exclude equine liability. Therefore, the approach you choose should be tailored to the exact circumstances in which you plan to use your horses. For example, if you intend to use your horses in a commercial setting, you should check if your policy covers this. In addition, it is essential to ensure that you are protected from any potential claims for bodily injury or property damage caused by your horse.
The first question you must ask is whether the coverage you are considering will protect you in the event of a lawsuit. For example, if you own a riding stable and a riding school, you are likely to be sued by a student or bystander who was injured during a lesson. In such cases, the Additional Insured would provide defense and pay the claim up to the policy limit. You may consider purchasing an umbrella policy that covers liability claims for a single activity.
Exclusions
Before getting your equine liability insurance, you must know the policy’s exclusions. While most policies cover the basics, certain things are excluded. For example, primary medical coverage may not cover certain conditions, such as arthritis and colic. If your horse suffers from these conditions, you may want to consider getting more coverage. Sometimes, you can negotiate exclusions with the insurance company to decrease the costs.
Another essential coverage typically excluded from equine liability insurance is care, custody, and control (CCC). CC&C is available as an endorsement or separate policy and provides coverage for non-owned horses. It can cover a horse boarding facility and other horses you train at your farm. You might incur a liability claim due to one of these horses. Most equine liability policies have a limit per horse, and this limit will determine whether you’ll be able to get the full amount of coverage.
Cost
Protecting yourself from the costs of lawsuits related to equine operations is essential regardless of the number of horses you have. For example, in a Midwestern state, the annual premium for horse operation insurance could be $2,500, but a 25 percent credit on the tip could cut that cost by $625. Coverage for an accident while trailering a horse within your farm would cover the expense of removing the dead horse and obtaining a post-mortem.
When purchasing equine liability insurance, you may combine it with a farm owner’s policy or purchase a separate general liability policy. Liability limits are split between one and two, or you can purchase a policy that provides a $1m per occurrence limit and a $2m general aggregate limit. In addition, some companies offer savings by attaching deductibles to liability coverage. The policy may also include a property-owners hazard clause.
Commercial vs. Private Equine Liability Insurance
If you have a commercial equine operation, you may be wondering if you need to carry liability insurance. While many homeowners’ policies don’t cover the risks of equine business operations, there are a few ways to protect yourself from unforeseen liability claims. For one thing, you can review the equine liability statute in your state. Second, you should know that all commercial general liability policies have an exclusion that prohibits coverage for damage to property while in the insured’s custody or care.
Third, there are several differences between commercial and private liability policies. The most crucial distinction between the two policies is the coverage each policy will offer. Personal policies typically offer more protection than commercial ones. Commercial liability policies will include boarding and training facilities limits, while private policies cover individual horse owners. Private policies do not cover boarding or training facilities and usually exclude horses used in lesson programs.
Alternative Therapies Excluded from Equine Liability Insurance
Pre-existing conditions are frequently excluded from coverage under equine liability insurance. Before an insurance policy can cover an expense, the company looks at the horse’s health history and other relevant circumstances. Medical limits are usually limited to the amount of the insured animal’s value, so a policy will only pay for covered treatments up to this amount. For example, a $10,000 insured horse would be covered up to that amount for any medical expenses incurred.
The cost of primary medical/surgical coverage is typically a flat rate, and the deductible is generally between $150 and $250. However, these policies do not cover losses incurred due to neglect, theft, or other causes beyond a horse’s control. This coverage is best for horses aged between thirty-one days and twenty-four years. However, this policy excludes coverage for certain alternative therapies.
