MANAGING RISK FOR EQUESTRIANS
Owning and working with horses fulfills the brightest dream
for many people. If you have realized this dream, you are
aware that along with the most delightful aspects of horses
comes unpredictability. Have you considered the risk, responsibility
and liability surrounding your involvement with horses?
Here are some important questions to think about if you
own a horse, work with horses, or operate a commercial establishment
involving horses:
- What happens if your horse injures a
client or visitor to your property (for example, kicks,
bites, or steps on a person)?
- What happens if your horse gets loose
and causes an accident or damages neighboring property?
- What happens if you are giving riding
lessons and a client falls off your horse?
Are you fully aware of the risks and your liability in
these situations? Do you know how to protect yourself and
your assets from a potential lawsuit? Do you know
how to protect yourself from liability and manage risk?
This article will provide an overview of potential risks
and liabilities, and will outline ways in which you can
use insurance for risk management. This article presents
an overview of the issues. Upcoming articles will focus
on specific areas and will expand upon the issues.
Although it is not possible to have a completely zero risk
situation when you are involved with horses, having a risk
management program with proper liability insurance will
go a long way towards protecting yourself and your commercial
operation. You need to know the ins and outs of which kinds
of insurance and liability policies will cover you in your
specific situation. It is of utmost importance that you
consult with a professional risk management and insurance
company to help you look at your individual needs in this
area. There are some differences in each state so a “one
size fits all” solution will not meet everyone’s individual
needs.
Things to consider in risk management:
- What does your personal or homeowners
insurance cover? You need to know specifically
what your policy covers, the limits of payouts, and what
the deductibles are. If you have even a small amount of
business purpose from your activity with your horse(s),
this kind of insurance will not be sufficient.
- Will a waiver of liability provide
enough protection? Waivers of liability (also
called "releases") are potentially powerful
documents, and in many instances they can succeed in having
a lawsuit dismissed outright. However, the fact is that
state laws differ as to how enforceable waivers can be,
not everything can be released away, and people who sign
releases can sue. This means you may be forced to undergo
expense of hiring a lawyer in an attempt to enforce your
release. A proper liability insurance policy would handle
the task for you and pay the lawyer, at the very least.
- What are the terms of your policy?
You need to clearly know your responsibilities, the limits
and deductibles.
- What kind of extra liability
insurance do you need for your specific circumstances?
There are various types of insurance policies available
to you depending on your specific situation with horses.
There are policies for horse trainer/instructor liability
(for any trainer or instructor who works at either one
facility or numerous facilities in the course of their
employment); care, custody and control liability (for
people who have a boarding or training facility), and
commercial equine liability (this is business liability
insurance specifically for the equine industry, and will
vary according to the specific activities of your commercial
enterprise).
- How am I covered under my state's
Equine Activity Liability Statute? Presently,
44 states have these laws. All of them differ. These laws
are not, and were not intended to be, "zero liability
laws." In fact, a small number of these laws state
that you are not protected from claims of "negligence,"
while other laws offer more protection. Even if you are
convinced that your state has an excellent equine liability
law, liability insurance is still a must. After all, these
laws typically do contain exceptions and provisions that
allow certain types of lawsuits to proceed.
This article has provided a brief summary of the potential
risks in owning and working with horses, an overview of
who needs to ensure they are properly covered by liability
insurance, and a brief look at the various types of insurance
coverage to help you manage risk. Properly protecting yourself,
your assets, and your commercial operation is very important.
It is recommended that you fully understand the specific
coverage that will meet your individual needs. It is also
of utmost importance that you work with a professional to
fully understand your policy – the requirements, limitations,
and level of coverage it offers. Future articles will provide
an in-depth look at specific situations, ways to manage
risk, various types of liability insurance, the state Equine
Activity Liability Statues, how your policy works, and how
to effectively work with your insurance company and agent.
The truth is Equine Insurance, if
not purchased correctly,
can cost you hundreds or perhaps hundreds of thousands of
dollars.
Call us toll free today for an evaluation of your needs
or simply complete a Quick Quote request by clicking on
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Disclaimer:
Articles from Equine World Insurance are offered for general
informational and educational purposes. They are not offered
as, intended as, and do not constitute legal advice or legal
opinions. It is our intention to keep this information current,
although we do not promise or guarantee that this information
is correct for your exact situation, complete or up-to-date.
You should not act or rely on the information in these articles
without seeking the advice of an attorney who is licensed
to practice in your state. |
