When you own an equestrian business, you need to protect yourself from any lawsuits if something goes wrong. Equine business liability insurance is a great way to protect yourself and your employees. A mistake can cause a horse’s performance to suffer or ruin its chances of winning at a high level of competition.
Infertility Coverage
Infertility coverage for your horses can protect you and your business against various potential liabilities. For example, if your stallion becomes infertile, your insurance company will reimburse you for medical expenses and veterinary fees. The policy also protects you against claims for loss of use and fire. In addition, you can get coverage for vitamins, medicines, and computers.
The type of infertility coverage you select depends on what you expect to cover. For example, you can choose to have your stallions covered against infertility if you’re breeding them for profit. First, however, you’ll have to ensure your stallions are “proven,” which means that they’ve bred mares successfully. Unfortunately, this does not necessarily mean their offspring are successful in show rings, sale rings, or racetracks.
Full Mortality plans include a clause called Guaranteed Extension. This extends coverage up to 12 months past the policy expiration date. This clause is particularly important if your horse has experienced laminitis during the policy period. If you report the condition promptly, your mortality coverage will be extended for up to 12 months.
Coverage for Equestrian Events
Coverage for equestrian events is an important component of a horse business liability insurance policy. It will protect you from lawsuits and provide defense costs if a third party sues you. Horse event liability insurance will cover property damage, bodily injury, and legal defense costs. However, this type of policy will not cover damage caused to the horses themselves or the event participants.
Equestrian events are typically short-term and range from one day to fifteen days. In addition, they may be sponsored by an organization or charity and may not involve other animals. Therefore, the risk level associated with these events is moderate to high. Typically, horse owners have liability insurance coverage, but if you plan to host a horse show, you must consider getting an event liability policy.
Equine events require a lot of planning. You need to make sure that everyone’s safety is a top priority. Unfortunately, despite all the planning, accidents and injuries can occur. In addition, without adequate liability coverage, you could face legal action and financial hardships.
Cost
Equine business liability insurance can cover major expenses that may arise while running a horse operation. This type of insurance is required by many states and can be very helpful if your horse requires major surgery. Some policies also cover employee medical costs and other expenses. The cost of this type of coverage depends on the number of employees you have and the risk your business poses. Equine businesses are typically one of the highest-risk types of businesses, so the cost of this coverage may be high.
If you own a horse business, you must have liability insurance to protect yourself against a potential lawsuit. In addition, most states require workers’ compensation insurance for horse owners. While modern horse healthcare has greatly improved over the last two decades, treating an injured horse can be quite expensive.
Exclusions
When choosing a liability insurance policy for equine businesses, there are many factors to consider. First, be sure to ask about the policy’s exclusions. These are areas where your coverage may be limited or nonexistent. Then, evaluate your risk profile. You may find that some exclusions are unwarranted or unnecessary.
Secondly, make sure the liability insurance is tailored to the specific needs of your equine business. For example, if you own a farm and use your property for commercial activities, you may wish to package your property insurance with liability coverage. Also, carefully review the limits, as liability coverage can have a split limit. For example, a $1m per occurrence limit would provide coverage up to $1 million for a single claim, while a $2m general aggregate limit would cover up to $2 million for the whole policy year. Some companies also offer savings by attaching deductibles to liability coverage.
In addition, some policies exclude certain types of procedures or treatments. For instance, routine joint injections may not be covered. This is because joint injections fall under the category of medications.