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Protecting Your Equine Business

Professional Peace of Mind

Running a business is rewarding but comes with inherent risks. Whether it’s an equine training farm, judging a horse show, or teaching one or two riding lessons per week, insureds face unique liability and property exposures not covered under a traditional homeowner policy. Unexpected challenges can arise in the blink of an eye. That’s why securing the right insurance coverage is critical, but proactive measures—such as contracts, waivers, and strategic planning—enhance your protection and ensure your business’s resilience.

Why Insurance is Essential for Your Business
Insurance provides more than financial protection—it gives you the peace of mind to focus on growth and success. Let’s explore how you can combine insurance with sound business practices to protect your operations from every angle.

Insurance Policy

Naming the Correct Insured Parties
Your policy should correctly list all entities and individuals associated with your business as “named insureds.” For example:

• If your business is an LLC, the LLC—not just you personally—must be listed.
• Partnerships or joint ventures should also be named.

Missteps here can result in denied claims, so verify that your policy reflects your current business structure.

Who Is an Insured?
Understanding who is covered under your policy is critical. In equine and farm industries, “insureds” typically include owners, employees, and volunteers performing business-related duties. If you work with subcontractors, they may not automatically be covered under your policy unless explicitly named or included. Ensure that subcontractors have their own liability policies.

Subcontractors and Your Insurance Policy
If subcontractors are involved in your operations, take these steps to protect your business:

• Confirm Coverage: Require proof of insurance from all subcontractors. Liability and workers’ compensation policies are essential.
• Additional Insured: Request that your business be listed as an additional insured on their policies.
• Indemnification Clause: Include an indemnity agreement in your subcontractor contracts to protect your business from liability resulting from their actions.

Scheduling Equine Exposures
Unlike a general business, an equine operation has distinct risks that require thorough identification and proper scheduling on an insurance policy. Each exposure—whether it’s related to the animals, facilities, or activities—needs to be accounted for to ensure adequate coverage. Failing to list or correctly describe exposures can leave critical gaps in protection, potentially leading to denied claims.

For example:

• Equine Activities: Riding lessons, training, breeding, and boarding all present unique liability exposures. Each activity must be detailed in the policy to ensure coverage for associated risks.
• Facilities: Barns, arenas, fencing, and pastures should be accurately described, including their usage and condition.
• Owned and Non-Owned Horses: Policies should differentiate between horses you own, lease, or have in your care (e.g., boarders’ and training horses) and include proper care, custody, and control coverage.
• Employees and Subcontractors: Workers, riding instructors, trainers, or seasonal staff involved in equine activities need appropriate liability or workers’ compensation coverage.
• Events and Competitions: Hosting or participating in horse shows, clinics, or other public events increases liability and may require additional endorsements or policies.

By properly identifying and scheduling all exposures, an equine operation ensures its insurance aligns with its actual risks. This proactive approach reduces potential coverage gaps and provides peace of mind, knowing that every aspect of the business is protected.

Commercial Liability and Property Insurance 101
Equine Commercial and Property Insurance is designed to protect businesses in the equine industry from a variety of risks. This coverage typically includes:

• Commercial General Liability (CGL): Protects against claims of bodily injury, property damage, and personal injury to a third party caused by your business operations, such as a visitor being injured on your farm or damage to a client’s property.
• Property Insurance: Specifically protects the buildings and structures on your property from damage due to fire, wind, theft, or vandalism. It may also cover the contents inside, such as tack, equipment, and feed.
• Commercial Auto Insurance: For equine businesses that use vehicles to transport horses, this covers accident or damage while traveling with horses.

Professional Equine Liability Insurance
This coverage is designed to protect equine professionals—such as trainers, instructors, sales of horses, judging, show officials and barn managers—against claims of negligence or errors in their professional services.

Protecting Customers’ Property

Care, Custody & Control
If you have horses in training and are responsible for their primary care, then you need care, custody, and control insurance (CCC). A Standard General Liability Insurance Policy excludes coverage for personal property (horses are an example) in your care, custody, or control. This coverage fills this void by promising to pay all sums you are legally obligated to pay for damage to non-owned horses in your care, custody, or control. This coverage does not apply to horses that you own or lease.

Tack and Equipment
If you store or transport customer property, such as tack or other equipment, make sure it is either scheduled on your insurance policy or advise your customer in writing. Outline in your contracts what is covered (and not covered) to manage client expectations. Proper storage and security measures can also help reduce the risk of loss or damage.

Protecting Your Workers

Agriculture, including equine operations, is one of the most hazardous industries, exposing workers to risks ranging from minor injuries to life-threatening incidents. Many states exempt agriculture from workers’ compensation laws, but this doesn’t protect employers from liability. Even if your state’s laws exempt your operation, you could still be held legally liable for worker injuries. Understanding your state’s definitions and consulting with an attorney is essential to ensure compliance. Voluntary workers’ compensation coverage is a smart investment, offering medical and wage protection for injured workers, limiting liability, and promoting safety. Additionally, implementing safety measures like training and facility inspections can help mitigate risks and ensure a safer workplace.

Essential Legal Documents

Waivers
Liability waivers protect your business by ensuring clients understand the risks of your services. In industries like equine training and boarding, waivers are essential for reducing liability. To ensure enforceability, have them reviewed by a legal professional familiar with state laws.

Boarding & Training Contracts
Clearly defined contracts establish expectations and reduce disputes. They should cover payment terms, the scope of services (such as training and boarding responsibilities), emergency procedures, and dispute resolution clauses. Contracts must also define the responsibilities of each party, including insurance coverage for client-owned animals or property.

Subcontractor Agreements
Subcontractor agreements define roles, payment terms, and liability insurance requirements. It is important to ensure that subcontractors carry their own liability insurance and name your business as an additional insured. These agreements protect your business and clarify expectations, reducing the risk of disputes or uninsured claims.

Emergency Action Plan (EAP)
Emergencies can disrupt any business. Create an EAP that addresses:

• Fire safety
• Severe weather protocols
• Medical emergencies (for animals and people)
• Containment procedures for loose or injured animals

Ensure all employees, subcontractors, and clients understand the plan, and regularly update it as your operations evolve.

Preventing Claims
Proactive risk management can help you avoid costly claims. Here’s how:

• Regular Inspections: Address hazards like loose fencing, unsafe footing, or faulty equipment promptly.
• Clear Communication: Educate clients, employees, and subcontractors about safety protocols.
• Staff and Subcontractor Training: Ensure everyone working with or around your business is well-trained in emergency procedures and safe practices.
• Document Everything: Maintain detailed records of maintenance, client interactions, contracts, and incident reports.

Taking proactive measures—like creating contracts, using waivers, and developing an emergency action plan—combined with the right insurance, gives you confidence in your business’s protection.

Prevent. Protect. Prosper.
For more information about equine or farm insurance, or if you have a topic you’d like to see covered in our next blog, please contact us directly at:

The views, information, or opinions expressed in this blog are solely those of Julie Fershtman, and do not necessarily represent those of Equidae Insurance.

For more information about equine or farm insurance, or if you have a topic you’d like to see covered in our blog, please contact us directly at: Equidae Insurance, Inc. 608 Virginia Street East, Suite 302 Charleston, WV 25301 p. (304) 346-1198 f. (304) 345-3535

Stacey Halloran, Agent
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