If your client roster includes commercial agribusiness, farm and ranch clients, or equine operations, you understand the unique risks involved in operating a business that involves horses. If you’re new to these risks, be assured that the equine world is full of opportunities for insurance agents — and comes with its own stable of risks. Read on to learn what equine liability coverage is and why it’s crucial to empower yourself to better serve your clients and expand your market reach.
What Is Equine Liability Insurance?
Whether your clients own a stable, run a boarding facility, train horses, or offer riding lessons, equine liability is an essential safeguard. Equine liability insurance is designed to protect against claims arising from bodily injury or property damage caused by horses. It covers a range of scenarios, ensuring that horse owners and handlers are financially protected in the event of accidents or incidents involving their horses.
- Bodily Injury protects against claims when a horse causes injury to a person. For example, if a horse kicks a visitor at a stable, resulting in medical expenses, the insurance would cover those costs.
- Property Damage covers damage caused by a horse to someone else’s property. Perhaps a horse escapes and damages a neighbor’s fence — the policy would cover the repair costs.
- Legal Defense Costs are covered in the event of a lawsuit, which is crucial as legal battles can be lengthy and expensive.
- Medical Payments cover expenses incurred by an injured party, regardless of the policyholder’s liability. It’s designed to provide immediate financial assistance for minor injuries.
- Personal Injury includes claims of libel, slander, wrongful eviction, and invasion of privacy related to horse-related activities.
Why Is Equine Liability Insurance Important?
Despite often being well-trained, horses are large and powerful animals capable of causing significant harm or property damage. They can also be unpredictable, and accidents can lead to substantial financial consequences. The Kentucky Supreme Court will soon consider a case filed by a woman bitten by a horse at Churchill Downs, challenging the liability of the former Kentucky trainer and the venue itself. It’s a great example of the importance of equine liability insurance and the legal implications for those involved.
Challenges in Equine Liability Insurance
The horse liability insurance market brings unique hurdles that require careful navigation. As an insurance agent, understanding these challenges is essential for effectively managing risk and securing comprehensive coverage for your clients. Let’s explore some of the key obstacles and how they can impact your approach to providing equine liability insurance:
Geographic Locations Prone to Severe Weather
Hurricanes, tornadoes, and floods pose higher risks for insurance providers. These natural disasters can cause substantial damage to facilities and lead to increased claims, making insurers cautious about offering coverage in these regions.
For you, working closely with clients to implement robust risk management strategies is essential. From improving structural resilience and creating comprehensive emergency response plans to ensuring proper shelter for horses during extreme weather events, demonstrating proactive measures can help mitigate some of the perceived risks and potentially lead to more favorable insurance terms.
Operations with Problematic Loss History
Facilities with a history of frequent claims or significant losses present another challenge. Insurers are wary of underwriting policies for operations with difficult claim histories as past claims can be viewed as an indicator of future risks. The potential impact can include higher premiums, higher deductibles, and even denial of coverage.
You can advise clients on the importance of maintaining a favorable loss history through diligent adherence to safety protocols, regular staff training, and thorough documentation of all incidents and preventive measures. By demonstrating a commitment to safety and risk management, clients may become more attractive to insurers.
Ownership and Control Requirements
To be covered by equine liability insurance, horses must be owned by the policyholder or under the policyholder’s care, custody, and control so that insurers can accurately assess the risk and provide appropriate coverage. Any changes need to be clearly documented and communicated to the insurer in order to maintain coverage.
You can help educate clients about these requirements and ensure they keep meticulous records. Any boarding agreements, leases, or training contracts should clearly define the terms of care, custody, and control to avoid gaps in coverage.
Why MiniCo Is a Good Partner for Insurance Agents
Equine liability insurance is a crucial investment for anyone involved in horse-related activities. It provides peace of mind and financial protection against the unpredictable nature of working with horses. By understanding its unique nuances, you can help safeguard your clients’ operations or even open up opportunities within a new market for your business. Partnering with MiniCo further enhances your ability to offer comprehensive solutions, ensuring their equine operations are well-protected. Contact us today to learn about our exclusive Agribusiness program that offers Equine Liability Insurance and a Professional Services Liability endorsement as well as Care, Custody, and Control coverage.
