Insurance is a must for various things in life, including auto and property insurance. But if you’re the owner of a horse, you’ll also require equine insurance in order to ensure you’re not on the hook to pay out of your own pocket for issues that occur as a result of your horse, including injury to others. But it’s important that you understand everything there is to know about insurance policies to ensure that you are fully covered, especially if a lawsuit is brought against you.
Here are some unpleasant insurance coverage surprises that others have gone through over the years that you should be aware of.
Homeowner’s Insurance Policies Do Not Provide Coverage For Small Businesses
The majority of businesses in the equine realm are small businesses. These can include providing riding lessons or barn owners that charge others for boarding their horses. Such small business owners might think that because the scale of their operations are quite small, business insurance is not necessary. Further, they might just assume that their homeowner’s liability insurance policy will cover their business activities. This is simply not true.
Homeowner’s insurance does not cover business insurance. Actually, homeowner’s insurance policies will not provide any coverage if someone is injured as a result of something to do with the business. On the other hand, equine liability insurance policies are specifically designed to provide coverage for business-related risks associated with horses. Small business owners should consider such insurance policies to ensure they are adequately covered.
Commercial General Liability Insurance May Not Provide Coverage
Should a boarding stable protect itself by obtaining commercial general liability insurance, that still might not be enough to have insurance against a foreseeable risk, such as a horse getting injured at the stable. The reason for this is that liability insurance policies usually exclude coverage for claims that involve any damage to or loss of personal property that belongs to others in the stable’s care or control. According to the law, horses are seen as personal property. Equine insurance firms, on the other hand, provide extra insurance to fill this gap.
Commercial General Liability Insurance Does Not Provide Enough Coverage For Injured Employees
Equine business owners who have employees may find that commercial general liability insurance is not enough, particularly because such policies often have employee exclusions that prevent coverage for any claim that is brought forth by injured employees. Equine business owners sometimes make the mistake of assuming that their employees are independent contractors, and that they do not require any worker’s compensation insurance. That can be an expensive mistake.
To be safe, anyone who owns a horse should absolutely obtain equine liability insurance should anything happen that places them at legal risk.