I’ve just about completed the stable and I’m planning on having 2-3 boarded horses. Now it’s time to shop for some insurance.
With the boarders we are looking into both “Commercial Equine Liability” and “Care and Custody.” Will also need to get the actual stable covered, I don’t think hubby has changed our homeowners’ policy to cover that yet. Are there any other policies I should be considering?
What companies do you use and what coverage do you have?
Thanks for any suggestions or advice!
You should speak to an equine insurance specialist that’s familiar with your state’s insurance requirements, etc. A broker like Blue Bridle or others…check the back of most equestrian magazines for agencies that specialize in this kind of coverage.
Definitely speak with a specialist equine insurance brokerage. I use Broadstone and would recommend them.
Your homeowners will not cover your boarding operation; you will need liability insurance for the boarding business. Liability protects you if someone sues you (if, say, a boarded horses gets loose, gets on the road and causes an accident, and the car’s driver sues you).
Care, Custody, and Control insurance covers you if the boarder sues you because of something negligent you’ve done. It makes sense if you are boarding horses that are valuable. I board retired horses, and though some people consider it heresy, I do not have Care Custody and Control. This is because a) I would have to do something to injure a horse b) the owner would have to decide to sue and c) even if a) and b) happened, the horses have NO value, so what would the owner be awarded? (And for those who say that the insurance would cover legal fees in the event of even a frivolous suit, that is true, but it is also true that the boarder would have to incur substantial legal fees in order to institute a suit)
You might find that your homeowner’s insurance will take issue with your plan to take on boarders. I would have been exploring the insurance options long before building a barn for boarders, as the cost may be hard to cover with only 2 to 3 boarders (which is why many such operations are not specifically insured, which I don’t recommend at all). As others said, talk to an equine specialist and they should be able to guide you.
That’s a good point that horsepoor mentions…your existing homeowner’s insurance may need to be replaced with a different type of contract due to the farm operation. This varies by state and by insurer. The equine broker can help you understand what your situation will be where you live.
Thanks so far. I’ll get in contact with Broadstone. I’ve got a quote from EMO whom I have my horses insured with right now, but I’d like to get a few more options.
We have spoken with our homeowners insurance; wouldn’t want to get into a problem there! 
House and property was purchased primarily for my own use. Boarding will be a side bar to help offset some of the stable costs.
More than likely, your homeowners will drop your entire property once you take in dollar one. You will need a commercial liability policy and if you have not already, incorporate your boarding business. Plan on at least doubling or tripling your current policy costs.
For all the doom and gloom here, it was not that big a deal for us. We had to look around a bit because most places that do homeowners’ don’t offer farm insurance. Our farm insurance cost about what homeowners’ would have, and boarding added about $100 per horse per year to it.
I agree, it isn’t a big deal.
My liability policy costs me $500/year.
(We made the mistake of going to our regular insurance agent for a quote, and were told it would be $1500 – big difference!)
The Farm Bureau also had a program (may still have it) to insure people who took in a horse or two and didn’t charge much for it. I forget what the income cap was, but it was very low – on the order of charging $100/month for board, as I recall.
Even if your homeowners will agree to continue covering your house, it may be cheaper to buy one policy that will cover the entire property including barn and associated liability with boarding.
We use Hoffberger for everything on our farm, home and auto. Richard owns a farm and has been in the TB business for a long time. They are based in Maryland but write insurance in other states also.
You will want a commercial policy as well as care, custody and control. In addition, if you have significant assets, you may find that an umbrella policy is a good idea.
If you are hiring employees you also will be needing workman’s comp insurance. This prevents you from being sued should an employee be injured on the job.
Also, make sure that your buildings, machinery (tractors/mowers/spreaders) and tack/equipment are covered.
We have a friend going through this now. She has been forced to close her equine business and pay a very large fine. She was lucky to keep her house…
[QUOTE=Therese;8001639]
I’ve just about completed the stable and I’m planning on having 2-3 boarded horses. Now it’s time to shop for some insurance.
With the boarders we are looking into both “Commercial Equine Liability” and “Care and Custody.” Will also need to get the actual stable covered, I don’t think hubby has changed our homeowners’ policy to cover that yet. Are there any other policies I should be considering?
What companies do you use and what coverage do you have?
Thanks for any suggestions or advice![/QUOTE]
Commercial Equine Liability you NEED; Care Custody & Control I wouldn’t bother with unless the horses you board are high-dollar, IOW worth suing over if you screw up. Which isn’t a likely scenario in any event. I use Acadia Insurance Company via a broker, and recommend them highly–very affordable and comprehensive.
[QUOTE=airhorse;8006079]
We have a friend going through this now. She has been forced to close her equine business and pay a very large fine. She was lucky to keep her house…[/QUOTE]
The solution there for boarding only a few horses like the OP is to hire help on an independent contractor basis. They work on their own schedule, bring their own tools, and “do” multiple barns on a flat-fee basis. Avoids major cans of worms!
Checked with BO . They use Farm Family. and it’s a “Care, Custody, and Control”
rider or “whatever, they call it”.
Be very careful with this, there are some conditions that must be met for them to be truly independent contractors. Expecting them to show up on any type of schedule may disqualify this.
I think in general it is a bad idea to expect to pay your barn help as independent contractors. I think there are very few situations where barn workers meet the criteria to be classified as contractors and there could be penalties down the road. Also, just because someone is an independent contractor doesn’t mean they can’t sue you if they are injured on your property caring for your clients horses.
I would recommend talking with both a tax professional, an experienced insurance agent and a lawyer before opening your business, even if it is just a couple of horses. Whether you have two horses or 40, an accident could still happen. You want to make sure that your small at home business doesn’t expose you to liability that could cause you to lose your property or other assets. Aside from insurance, a lawyer can advise you on other strategies to protect your assets from potential lawsuits if you engage in a high risk business like running a horse boarding business. For example, you may find it advisable to create an LLC.
[QUOTE=airhorse;8006630]
Be very careful with this, there are some conditions that must be met for them to be truly independent contractors. Expecting them to show up on any type of schedule may disqualify this.[/QUOTE]
This is very easy to “establish”. Ran it by my accountant and attorney. And it past an IRS “acid test”.
The IRS is not involved in workmans compensation lawsuits.
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