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Insurance and the professional equestrian (specifically facility owners) - How many layers deep?

Off Course
#1

I’ve owned a boarding & lesson facility for 18 years. Most of them I was a single mother with out a pot to piss in so I carried good liability insurance, operated as a sole proprietor and used generic contracts, generic & our state equine liability law waivers.

Now I’m married, sold that property and moved and are building again from scratch. We had an appointment with an attorney that has worked in the equine industry for years for advice / help with getting an LLC, and specific contracts / waivers written for us.

I’ve got questions bubbling up in my head so I’m going to ask boarding / training facility owners some questions just because I’m curious.

  1. How many require horse owners (boarders) to wear an ASTM-SEI helmet when mounted?

  2. How many require horse owners (boarders and guests) and students to have health insurance (with or without proof)?

  3. How many allow guests of the horse owner (boarder) to ride the boarded horse?

  4. Does anyone require horse owners (boarders) to carry equine loss / health insurance - such as mortality / theft, with and without surgical etc.?

  5. Does anyone require horse owners (boarders) to carry some form of PERSONAL? (not commercial) liability insurance (for example Sue Smith’s horse kicks someone in the aisle way, explodes in the arena and causes an accident, bites someone walking by etc. and that someone, Joe Brown, sues for damages/injuries).

What types of similar protections do you use as a facility owner against liability landing in your lap (whether or not you were the direct cause of an accident)? Rules, contracts, waivers, conditions of service?

I’m having a follow up with the attorney but these thoughts were just running through my head. :slight_smile:

#2

might want to ensure the firewalls between personal and businesses remain intact by being an employee of the business, also pay for all boarding to the business if you have personal horses boarded at the business

Have the business sign a lease agreement and pay for the use of the facilities…

Kept everything thing separated, that is never commingle money

Suggest you also consult a CPA who knows farm/ranch tax

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#3

This is already being put into place, but excellent suggestions. :slight_smile:

#4

Check your state’s equine liability laws too -they vary from state to state.

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#5

My last barn required an Individual Horse Owner Liability Policy to answer question #5 in OPs post. It attached to the standard M&MM policy or could be purchased as a stand alone pretty cheap. They did not require the M&MM policy, Reason being older horses are often excluded or topped out limit wise and pre existing conditions complicate things.

Not a BO but after 50 years boarding out, never been asked to show proof of health insurance on myself and that proof might be a bit much to ask. All barns in the last 20 years required helmets when mounted and any guests to sign the waiver. Nothing is airtight but protecting yourself to the extent possible has never been more important.

State equine liability laws do not protect you from having to defend yourself from a lawsuit. They will try to say you were negligent and you have to pay to prove you were not. You need Insurance.

2 Likes
#6

I’m not sure if I, as a boarder, would feel about being asked about either health insurance or my health history.

If it is of significance such as an allergy or perhaps brittle diabetic, I would personally feel that I would disclose that information verbally to trainer/BO/BM as appropriate. Other health related issues I would not disclose; I would also not provide written verification of health insurance.

Sorry, to me, that is private information. If that was condition of boarding, not sure I’d be interested in boarding at that facility.

The only insurance I don’t think I’d have heartburn disclosing would be personal liability if that was a boarding requirement.

1 Like
#7
1 Like
#8

I’ve been involved in discussion about insurance and lessons at our riding club. We have a membership system that’s not appropriate for a private barn obviously but the parts that do apply:

In our province membership in the Horse Council is affordable and includes a basic $1 million liability for anything a horse does under your control. Many barns require all boarders to have this. I think it is very reasonable to ask.

Everyone who comes on property to handle horses without being in a professional capacity should sign a waiver. Lesson parents should also sign a waiver if they are allowed anywhere outside the heated viewing lounge. Many are completely horse ignorant and know less than their 8 year old and are prime targets for getting bitten or stepped on.

All juniors wear helmets mounted. Adults may sign an additional waiver to ride without, or you can just require everyone wear helmets at all times on the property.

All coaches should be insured and named either under the farm policy or carry their own insurance. This insurance covers uninsured students while in supervised lesson.

”‹”‹”‹”‹”‹
Outside riders should sign a waiver and the barn owner should be notified in advance. Outside riders should also carry liability like boarders. Long term half leases should be approved by the barn manager who can do whatever assessment or background check they do for boarders. Half leases are a great way of getting potential boarders and students so the right situation is good for the barn.

I think it’s unreasonable to require medical mortality insurance for horses as a low dollar or older horse or even a colic prone horse could be excluded. Also I don’t see how this protects the barn manager from liability.

In Canada everyone has good health insurance and many of us have excellent extended benefits in addition through our employees. So that’s not a question here. My impression is that if someone gets hurt it is more likely their insurance carrier that will sue for negligence to recoup costs, and they will sue your insurance company basically. So having private health coverage makes a client potentially more of a risk than not!

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#9

I agree, and the questionnaire that my BO has for boarders is voluntary information - like “do you have any medical conditions or allergies you want us to be aware of” so not invasive or prying which I think is nice.

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#10

The only reason I had the question about the health insurance is because I have seen that on forms. I believe I’ve seen that on Pony Club forms and possibly event forms? And I remember seeing it because it got my bristles all up too.

I was mostly curious how deep people got into liability protection.

For example I know some barns have rules that they don’t allow their boarders / students to jump if they’re not in a lesson. Personally I think that’s a little ridiculous, and as a competent adult rider who has been a horse owner for 30 plus years, if I can’t pop over a jump without being in a formal lesson then I’m not going to board there. :wink:

I do, however, find the idea of the personal liability coverage that somebody could have as a non-professional through a membership in their state’s Horse Council, intriguing.

”‹For $45 a year, less than the average annual expense (prorated of course) of replacing a $300 helmet or replacing your daily wear riding boots, you could have $1 million in protection in case your little angelic pony kicks somebody in the barn hallway, runs somebody down on a trail ride after you’ve been bucked off, or causes somebody else to get ejected because your horse is throwing shade in the riding arena. :slight_smile:

I was just wondering if anybody else saw it that way.

”‹”‹”‹”‹”‹”‹I was also wondering if anybody (a horse owner that boards their horse at a facility) would consider such a membership if the boarding facility was desirable in all other aspects (perhaps even had a waiting list)?

#11

You usually don’t need more than $1 million in liability insurance. It’s very very rare for a single claim to go that high. The aggregate is usually $2 million (multiple claims arising out of one incident). If you have significant assets that you need to protect, by all means consider higher limits.

it doesn’t matter if someone has health insurance, if you do something negligent that causes an injury. You are still responsible.

If you employ trainers or instructors, your policy automatically covers them.

If you have independent contractors as trainers and instructors and you would like them to have their own policy, make sure they give you a copy of their certificate and you note the expiration date.

Liability waivers won’t protect you from everything.

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#12

There’s a place for insurance info on the medical armband worn for XC. (Not sure about the newer bracelets that many people now have.) I think this has less to do with proving you have insurance than it does with having your insurance info (if you are covered) readily available if you have a major accident and cannot provide it.

#13

You definitely have a point, but the problem is, if a BO/BM/Trainer allows one client to “jump” unsupervised, they have to be prepared to let all the students jump unsupervised or tell them why they are being treated differently. It is nigh unto impossible to allow one client privileges and deny the others. Since the majority of the students/clients shouldn’t jumper unsupervised, it is safer for the horses and the clients to just have a rule that no one jumps outside of lessons. It stinks for a lot of boarders with experience, but that is the way a lot of facilities choose to deal with the safety and liability.

1 Like
#14

  1. How many require horse owners (boarders) to wear an ASTM-SEI helmet when mounted?
    As a BO, I require this. All riders, all disciplines, all skill levels, no exceptions.
    When I boarded, I only had one BO who ever required this that I can recall. I never asked, though, because I always wear a helmet.

  2. How many require horse owners (boarders and guests) and students to have health insurance (with or without proof)?
    As both a BO and past boarder, I have never heard of this as a requirement. Personal liability insurance in case they/their horse does something to someone else, sure, but IMO it’s their prerogative if they want to have their own health insurance or not, doesn’t have ish to do with me or anyone else on the farm. I would consider this an invasion of privacy.

  3. How many allow guests of the horse owner (boarder) to ride the boarded horse?
    As a BO, I allow this.
    Have never boarded anywhere that didn’t.

  4. Does anyone require horse owners (boarders) to carry equine loss / health insurance - such as mortality / theft, with and without surgical etc.?
    As a BO, no.
    Have never boarded anywhere that did. I would consider this an unreasonable requirement.

  5. Does anyone require horse owners (boarders) to carry some form of PERSONAL? (not commercial) liability insurance (for example Sue Smith’s horse kicks someone in the aisle way, explodes in the arena and causes an accident, bites someone walking by etc. and that someone, Joe Brown, sues for damages/injuries).
    As a BO, I do not require this.
    I have boarded at barns that did. I consider this a reasonable requirement.

#15

This was our program when we ran the barn. I’ve had multiple tenants since then and they have had some different practices. Since I don’t live in a Nanny State (at least not yet :wink: ) our rules were fairly simple and straight-forward.

By contract I had veto authority over just about anything that I saw that I didn’t like. That allowed me to act; it did not compel me to act.

The world is different than it was 15 years ago and my contract, today, would reflect those differences. I might require more in the way of “boarder insurance” but maybe not. The better practice might be to price into the board fee a robust primary liability policy for the BO and staff and buck that up with good umbrella policy. The more insurers that you have to deal with the higher the premiums and the higher the probabilities of conflicts between the insurers. Stick with the KISS principle and you’re likely better off.

G.

Former Regional VP for Claims, casualty insurance carrier.

#16
#17

  1. Don’t know of any barns that will allow riding without an approved helmet.

  2. Have never come across this requirement

  3. It is carefully supervised by the barn. Waivers must be signed. Leases have to be approved by the barn. The barn is exposed to liability should the lessee become injured on the property.

  4. I’ve seen this requirement especially when the barn’s insurance won’t cover a high dollar horse.

  5. Sometimes.

#18

Second what BeeHoney says and want to add a global observation. As a BO, you can make whatever rules you like but if you make the rules, you have to enforce the rules. So if you require boarders have insurance (all kinds cited), be prepared to collect declaration pages so that you ascertain there is coverage. Keep on top of it because people do things like lapse coverage. Do you have a plan if someone loses their health insurance or drops their liability coverage? What if someone mistakenly thinks their homeowners covers them? Are you planning to kick them out? You need a plan and the strength of will to consistently enforce it. Selective enforcement is problematic if you want to minimize your own liability exposure.

The best thing you can do is buy a commercial general liability policy that covers your business. Require all independent contractors to carry their own liability (usually outside trainers) and collect releases from everyone. You certainly can recommend others purchase insurance and give them names of some agents/insurance agencies.

#19

I can’t imagine having 20+ boarders who all bought 1 year liability polices on different dates, so they all expire on different dates.

1 Like
#20

So, you may find that your clientele changes with this new facility, and that a more restrictive jumping rule may be appropriate. If you cater to mid or lower range DIY types, many of those folks either have the experience/know how to set jumps and school safely, or they ride more for pleasure and therefore don’t do a ton of jumping schooling anyway. Be forewarned that there is a large group of people out who lack the judgement and knowledge base to reliably do a safe and reasonable jump school on their own. For example, I have witnessed people set up gymnastics or combinations with bizarre distances, jump obstacles backwards (like a ramped oxer with a ground line only on one side), completely over-face their horse and end up in a training battle, or completely overwork/overjump an unfit horse.

Personally, I don’t enjoy being restrictive about jumping, BUT what happens at your facility has the potential to create liability for you and also reflects on you as the BO. I am a stickler for good horsemanship and I want my facility to reflect that. I am VERY supportive of riders who have the know how and dedication to bring their own horses along and to train independently, but that’s certainly not everyone. If you get a new group of clients in that come from programs with a lot of hand-holding and supervision, those clients are not likely to be prepared to jump school on their own.

I don’t know what the “right” answer is here. But I think you should be open to the fact that to protect yourself and your clients, sometimes restrictions are the best way to go. You could do a variation on the “no jumping without a trainer” rule and require that anyone who wants to jump without a trainer needs to be in a lesson program of some type and that any jumping they do outside of lessons is expected to be a review of what they have already worked on with their trainer.

Another side effect of having a “no jumping without a trainer” rule is that it will affect who your clientele is to begin with. Clientele in regular lesson programs are great clients, but they do have different expectations from a BO/BM than will DIY or pleasure riding clients. There are pros and cons to this, that’s just something you need to decide.

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