A Stable Investment

Insuring Your New Property Against Liability Claims

You've finally realized your childhood dream of keeping your horses at home.

Sure, it's a lot of work, but you've already hired a handyman to fix those loose stall doors and next week your old barn buddy is moving her horse to your place.

She's agreed to share responsibilities in exchange for reduced board.

That sum-mer vacation at the Cape may not be just a distant dream after all.

If you're a horse owner you already know that no matter how careful you are accidents come with the territory.

For equestrians, liability is the dark cloud that shadows everything we do with our horses, whether it's ambling down a forest trail or actively competing in a cross-country event.

Like it or not, we live in a litigation-happy society.

Placing blame is the in-thing, and while most states have an Equine Liability Law in place, posting a "Ride at Your Own Risk" sign is not enough to protect you from litigation.

The following article will give you ideas on what kinds of protection you might need as a new farm owner.

An Equine Insurance specialist will help you design a comprehensive package tailored to your situation, whether you purchased a state-of-the-art training facility or a small two-horse operation.

Personal Equine Liability Insurance

Personal Equine Liability Insurance is specifically designed for the private or recreational horse owner.

Many horse owners assume they are covered against liability under their current homeowner policies, but if you check with your insurance agent, you will most likely discover you are not adequately protected.

Personal Equine Liability (PEL) Insurance covers you if your horse causes personal injury or damages private property.

Most PELs will, subject to exclusions listed in your contract, pay for judgments against you and all associated court costs, including your defense.

Many policies insure up to five or six horses, making this a good choice for the backyard horse owner who does not derive any income from horse keeping.

Commercial Equine Liability Insurance for Commercial Stable Operators

In the eyes of the court, any person who performs an equestrian related activity, such as boarding, training, breeding, pro-viding transportation, etc. for a fee or barter is considered a professional equestrian and is subject to the laws of a business owner.

Coverage under a Commercial Equine Liability (CEL) policy usually provides for defense costs and pays claims up to the policy limits, usually between $300,000 and $1,000,000, although additional coverage can be purchased if necessary.

Bartering work for reduced or free board puts the stable owner in the category of a commercial operation.

If you have any questions about your professional status consult an equine insurance specialist.

Care, Custody and Control Coverage.

If you plan to board horses or provide mare care at your new facility, you'll want to investigate Care, Custody and Control coverage.

This type of policy will pay for illness, injury or death to horses in your care.

Premiums are determined by the number of horses in your custody, making this an affordable and smart choice for even small boarding facilities.

Club Insurance

This insurance provides coverage for various riding clubs and associations meet-ing on your property.

Generally, liability coverage is provided for a maximum number of meetings held in any given year during the life of the policy.

Tips on Reducing Rates You can lower your insurance premiums by establishing safety rules and posting them in high-traffic areas.

 Institute a no smoking policy and post signs where visi-tors can see them.

Post emergency numbers, including the local fire, ambulance, and hospital, by all telephones.

Require all riders to wear helmets and riding shoes with heels.

Know your state's liability laws and post an Equine Activity Liability sign.

Remember to use signed waivers according to the laws in your state.

Choosing liability insurance for your new property can be a little daunting to the average horse owner, but with the help of a licensed Equine Insurance Specialist, you'll soon be able to rest easy.

By Karen E. Baril