Equine and Farm Insurance “Horse insurance is generally of two types" By Nancy Brannon If you run a boarding stable, what kind and how much insurance should you have for your property, for your and others’ horses? Will Fussell at Fayette County Insurance explained the kinds of policies available and how to determine what you need. “Different operations require different types of insurance, but most important is a general liability contract. This policy covers care, custody, and control. That means if something happens to a horse under 'my’ care, it protects the farm owner/operator, covers legal expenses, for example if 'I’m’ negligent, it pays the claim. If I’m taking customers off the property, a policy should include 'in transit’ coverage. If you are training horses, the policy should be endorsed for that, for a trainer on the premises. If a trainer is independent and imported to the stable, the trainer should also have his/her own liability policy. “Tell your insurance agent all that you are doing so that the agent can prepare an appropriate policy. You need a good legal contract between the farm owner and the horse owner; a contract with each boarder. Are you providing equipment, tack? That is something to consider for coverage. Is the farm owner giving riding lessons? If so, it is important to understand the ability of the riders. Agents may ask how long you have been in business and what is your expertise in this field. Answers to these questions determine your ability to acquire equine insurance.” “Horse insurance is generally of two types: horse mortality and accidental. Horse mortality is the best and most expensive. Whatever happens to the horse, and if the horse dies, it is covered. You can also insure a horse for breeding purposes. Accidental coverage is for events such as lightening striking the horse, theft, trailer accidents, but is not applicable if a horse colics and dies. This type of insurance is less expensive, but the perils that are covered are limited. “A stable owner may need both types of policies: (1) a Commercial General Liability for Horses and (2) a Special Farm Package, or general farm insurance liability. Any type of farm operation needs this. A lot of times farm buildings and tack are not covered under homeowners’ insurance; and a homeowners policy could exclude liability for livestock. There is also different coverage for riders, and for personal property at home and off premises, such as at a show. “A Country Estate policy is a basic policy for a person with a house and acreage and horses for personal use only. If you start accepting money for keeping other’s horses, or even if you keep others’ horses for free, you still need a general liability policy.” “When you apply for a policy, an agent checks your stable and asks about a number of things. Is the fence in good condition? Is hay stored in the same barn where horses are kept, or in a separate building and brought in daily? Is the building masonry and steel construction or wood? Are there lightening rods? What type of flooring is in the barn: rubber bricks, concrete (not slick)? Is the stall bedding cleaned adequately and regularly? Is there electricity in the barn and, if so, is it up to code? What is the condition of the stalls, homemade or prefab? What kinds of horses are kept? Do you break colts, train green horses, or have mostly made horses? All these will help determine the barn rating. “There are three barn ratings: (1) Type 1 is superior quality, excellently maintained, hay stored elsewhere. (2) Type 2 is a nice facility, but the hay is stored in the same building with livestock. (3) Type 3 includes older type barns, barns not as well maintained, barns that are usually wood frame. The age of the building is an important factor. “What kinds of pasture fences do you have? Are the corners square or rounded? This pertains mainly to paddocks with plank fences. What is the general appearance of the entire property? How well is it maintained? “Another factor is dogs, which are usually found at horse stables, but can be a big liability for homeowners. What types of dogs do you have? Do they bite? This is important if you are bringing people onto your property and giving lessons. “Do you have a swimming pool? Is it fenced with a lockable gate? “Horse camps: what is your written safety program? Are children staying overnight or just during the day? If the latter, your liability exposure is less. Are they swimming? What other activities are there? Is there a medical person on staff? If staying overnight, what facilities are provided? “Trail rides: similar things apply as for horse camps. You need a written safety program and safety rules. Does the trail ride have a leader? Or do people just come and trail ride horses on your place? Make your insurance agent aware of all your activities in order to make sure the policy is properly endorsed. Will Fussell provides insurance through ANPAC, the American National Property and Casualty Company. His company has a Special Farm Package policy and a Commercial Liability for Horses policy. Check with your insurance agent to see what policies may be appropriate for your horses and your farm.