Horse Ownership Can Require Special Liability Insurance

There is good reason for horse owners to be fearful of their animals causing significant property damage or even actual injury to other people. The risk is real and means there is a substantial financial threat for the owners of these beautiful animals. This is because even well-trained horses are still unpredictable animals if they get scared. It is possible that you as the owner of a horse could suffer financial lawsuits for personal injuries and property damages. The straightforward answer to this dilemma is equine liability insurance.

Personal Versus Commercial Exposure

When you only use the horses for yourself and your family or friends, your exposure is limited to what they call in the horse insurance business “personal exposure.” If there is any money changing hands, then it becomes a more serious “commercial exposure.” This covers money-making endeavors with the animal, compensation for enjoyment of the horse, or an income tax filing that reports horse expenses and/or income.

It does not even have to be limited to money changing hands really. If you permit a horse instructor to utilize your equine to give lessons in lieu of lower boarding charges or providing you with personal horse riding lessons, this is also a commercial activity according to the IRS and horse liability. It explains why it is so critical to be clear on whether or not you need commercial liability insurance for your horse.

You should also note that in certain cases, your horse will be covered for any liability under a Farm Owners or Homeowners Policy. This coverage will vary on whether or not your horse is part of commercial activities and which ones.

Things to Consider Before Purchasing Horse Owner’s Liability Insurance

You should first ascertain if your property is providing you with effective horse liability coverage before you seek to buy specific policy coverage of this type. Some policies do specifically exclude horses from policy coverage, even if they are only utilized for personal activities. There might also be a set dollar limit specified in the policy terms. This could also feature particular exclusion clauses such as showing or riding the horses, or the horses departing from your property.

[ Tagged In ] , , ,