Insurance for boarding operations?

[Chatsworth_House]

Can anyone who is running a boarding operation chime in about insurance? Bonus points if you’re in Florida and if you rent rather than own the property!

We have the opportunity to lease a farm here that already has an established boarding operation/good boarders. We are VERY experienced horse people but have never run a boarding business, so are working out the details before we decide to get on board. I’d love to hear about what insurance you have, what company you use, and about how much it’s costing you.

Thanks in advance!

[clanter]

it has been ages for us but we had a Commercial Liability policy for the farm operation with a Care Custody And Control endorsement for the stock it took care of

I would not think things have changed much

Have you consulted a local ag insurance agent?

[TCA_Arabians]

I have been with American Bankers. That firm is evidently going out of the equine end of insurance. I’m currently checking out Nationwide Agribusiness. I’m also interested in other recommendations from those of you on this forum that carry commercial, equine insurance.

That said, the underwriter wants to know how many horses, boarders, types of events, whether onsite trainers carry their own liability, arenas, stands, shows, sponsored events, tack - the list goes on.

[IronwoodFarm]

Insurance is state regulated and not all carriers write in all states. You need a Commercial General Liability (CGL) policy. The property owner will be a named insured, which is not a big deal. Care, Custody and Control is an endorsement on a CGL policy. Typically is sold in number of horses covered/max value of the horse. I can’t remember exactly what my policy covers but it’s something like 10 horses for up to $5K a horse. That would be a correct reflection of value of my boarders’ horses, all QHs in their teens. You can get coverage for a larger number or higher valuation. Just keep in mind CCC only comes in play if you are sued for some negligent handling/care that results in an injury or loss of the horse. Since CC is relatively limited coverage, it is not particularly expensive.

As TCA Arabians noted, your premium is going to depend on the number of horses and activities you engage in. You will need to complete an application to get a quote. You are not committed to accepting the coverage. I would use an equine specialty agent for this coverage. I’m now with Blue Bridle who inherited me when they bought out Ziplow. The nice part about having a broker is that they can seek coverage from multiple insurers. Carriers do come and go from the market. I am with StarNet at the moment, but the carriers have changed over time.

One important point – you really must have this coverage if you run a horse business. While the likelihood of a claim is very small, if there is one, the carrier provides a lawyer immediately. If you have ever paid legal fees, you’ll know that a couple hours of a lawyer’s time can equal your annual premium and anything more substantive is likely exceed all the premium you have ever paid for coverage. Personally, I like having the insurance and never using it.

[clanter]

@TCA Arabians

That said, the underwriter wants to know how many horses, boarders, types of events, whether onsite trainers carry their own liability, arenas, stands, shows, sponsored events, tack - the list goes on.

some of those also may be covered under an umbrella policy of a club or association if the event is being hoisted by the farm… the farm should be named as an additional insured for the specific event and provided a copy of the endorsement, otherwise those events will be added to cost

[gumtree]

The best place to start is to ask the exiting boarding operation who they use. Esp if you are taking over that operation. I have had a several different carriers over the years. None have asked what my background, experience is.

Being in Florida limits you choice of carriers. You may experience sticker shock when you hear the numbers for proper liability insurance. Esp if you plan on giving lessons and catering to minors. Unless you plan on staging shows, events on a regular bases. It should be cheaper to buy coverage for the times needed. Based on my conversations most operations IMO are under insurances. If I were renting the facility I would dictate what coverage and what level of coverage is needed in the lease. I would make sure the carrier was told that I was to be informed of any changes or cancellation.

My last policy in Pa was with Nationwide Farm. I did not give lesson or catered to minors.

[Miss_Motivation]

Great suggestions here- and work with your agent! Insurance agents for stuff like farm insurance sell policies from a bunch of companies and should be up to date on who offers what kind of insurance, at what kind of price. It’s definitely niche insurance and you need a proactive, experienced agent to help guide you to appropriate coverage at fair value.

You need general liability, care/custody/control, and probably an umbrella policy too, perhaps tied in with renter’s insurance. An experienced ag agent should be able to tell you if the renting angle is going to be a challenging aspect or not in your area.

You also need to think long and hard about worker’s comp insurance, if the current operators don’t carry it. It’s quite pricy but critical to be legal and to protect yourselves, unless you will have no employees, Several good threads on it here recently.

When I opened my commercial stable in litigious California (which has no state-wide equestrian liability framework, like almost every other state) I was actually surprised at how affordable my insurance package was. Mine has my homeowner’s and the above mentioned policies rolled into one. My agent does nothing but equine/equestrian insurance and is a horsewoman herself- she’s been great to work with and ask about things.

Put your insurance costs on your boarding stable cost worksheet (you ARE doing a very detailed cost spreadsheet on this venture… right?) and ascribe a value per stall. Your insurance is a fixed cost- it won’t adjust if you’re full or have a few empty stalls, you have to pay it regardless, so know your operating costs.

It costs me about $83 a year per stall for the coverages I carry and has only changed by a few hundred dollars over the years. That is a million dollar policy on the first two coverages and then a million dollar umbrella. We don’t do shows, offer trail rides, and i don’t teach.

Trainers at our place must carry their own insurance and name me and my business as also insured on each policy, and they have to cover their grooms/assistants too. Your agent can be very helpful in getting you off on the right foot for insurance for everyone who may use the facility, in different ways.

[gumtree]

@Miss Motivation

Great suggestions here- and work with your agent! Insurance agents for stuff like farm insurance sell policies from a bunch of companies and should be up to date on who offers what kind of insurance, at what kind of price. It’s definitely niche insurance and you need a proactive, experienced agent to help guide you to appropriate coverage at fair value.

You need general liability, care/custody/control, and probably an umbrella policy too, perhaps tied in with renter’s insurance. An experienced ag agent should be able to tell you if the renting angle is going to be a challenging aspect or not in your area.

You also need to think long and hard about worker’s comp insurance, if the current operators don’t carry it. It’s quite pricy but critical to be legal and to protect yourselves, unless you will have no employees, Several good threads on it here recently.

When I opened my commercial stable in litigious California (which has no state-wide equestrian liability framework, like almost every other state) I was actually surprised at how affordable my insurance package was. Mine has my homeowner’s and the above mentioned policies rolled into one. My agent does nothing but equine/equestrian insurance and is a horsewoman herself- she’s been great to work with and ask about things.

Put your insurance costs on your boarding stable cost worksheet (you ARE doing a very detailed cost spreadsheet on this venture… right?) and ascribe a value per stall. Your insurance is a fixed cost- it won’t adjust if you’re full or have a few empty stalls, you have to pay it regardless, so know your operating costs.

It costs me about $83 a year per stall for the coverages I carry and has only changed by a few hundred dollars over the years. That is a million dollar policy on the first two coverages and then a million dollar umbrella. We don’t do shows, offer trail rides, and i don’t teach.

Trainers at our place must carry their own insurance and name me and my business as also insured on each policy, and they have to cover their grooms/assistants too. Your agent can be very helpful in getting you off on the right foot for insurance for everyone who may use the facility, in different ways.

Great post as always.

If you don’t mind me asking what did the $83 pay for? Seems quite reasonable, more than reasonable for Ca. Is that just for general liability? If that includes W-C, quite the bargain. How many stalls? As I am sure you know as with most businesses, esp horse businesses, “Economy of Scale” plays an important role.

When I was thinking about changing my business model to pleasure/sport boarding, lessons etc. The quotes I got were quite substantial in my state. I am in an area and have to compete with a lot of hobby farms. Nice ones, but they don’t have to make the numbers work. Make enough profit to live on and pay all the associated costs to run and maintain the property. The owners have substantial other income. So market forces wouldn’t allow for me to charge enough to compete and make the exercise worth while. The cost of insurance if I wanted to include minors was an eye opener.

[Miss_Motivation]

Hi- actually about $87 a year per horse: $5,200 a year divided by 60 stalls for the general liability, CCC, homeowner’s, and extra million umbrella.

I have good replacement on the home, high deductibles on everything, and should definitely consider higher replacements on all the ranch structures.

NO Worker’s Comp in there!! I wish! That’s about $19,000 a year additional.

[happilyretired]

I own a dressage training facility in Central Florida – I lease it to my trainers, who run the business. I carry the property insurance, and also a commercial liability policy. My trainer and his wife carry their own care, custody and control insurance, and liability and name me as an additional insured on their liability policy. I found it much easier to get a liability insurance (and way cheaper) in Florida than property insurance (hurricane risk). Many property insurers won’t write farm policies in Florida. You might want to check the Gordon Reiss Agency in Ocala – that’s who I use.

[Palm_Beach]

@Miss Motivation

Hi- actually about $87 a year per horse: $5,200 a year divided by 60 stalls for the general liability, CCC, homeowner’s, and extra million umbrella.

I have good replacement on the home, high deductibles on everything, and should definitely consider higher replacements on all the ranch structures.

NO Worker’s Comp in there!! I wish! That’s about $19,000 a year additional.

I’m just curious as to what you think will happen that will result in a claim that goes above $1 million. Umbrella liability usually covers damages to others, or damages to the property of others, not yourself or your house or your structures.