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FROM OUR PERSPECTIVE

We are often asked insurance questions related to facilities that board/train horses. Some questions come from new operators who just aren’t sure about their insurance needs. Others have been in touch with another source and realized (hopefully before it was too late,) that the coverage they need is not a commodity product like auto insurance; they need the guidance of an experienced equine industry broker like CapriCMW Insurance Services Ltd.

Others need to understand the risk relationship between horse owner, facility, instructor, employees, and contractors and how to manage that very unique environment.

The following questions and answers are excerpts from previous articles and publications we have distributed.

Q. What type of insurance do boarding facilities need in order to protect themselves as business owners, as well as their clients who have entrusted their horses to them?

A. The operator (could be a tenant or owner) needs to obtain COMMERCIAL GENERAL LIABILITY (CGL) insurance that covers all business operations on the farm – in this example, an “equine boarding” operation. It is worth noting that in the last few years, we have seen more and more insurers who were/are involved in (general) agricultural risk withdrawing from the equine business sector for a host of reasons. This can lead to a significant gap in protection if the operator is relying on a nondescript farm liability policy. The correct coverage includes specific clauses related to boarding as an insured operation and the “care, custody and control” of non-owned horses.

Q. Should there be a boarder’s agreement in place between the facility and the owners of the horse?

A. YES! A good agreement lays out the terms and conditions of the boarding arrangement. Items to be addressed are: boarding fee rate, fee due date, services included in the fee (feed, turnout, etc.), hours of operation, what areas boarders can access, detailed horse information, and emergency boarder contact information (including their vet, farrier, and insurance broker). Also, the contract must outline the circumstances that can lead to the agreement being terminated, including the rights of each party, if that occurs.

Q. Is it important that all boarders carry insurance?

A. Yes. Requiring that all boarders/owners/lessees have membership in Alberta Equestrian Federation makes sense on multiple levels. First is the assurance that if the member’s horse causes bodily injury or property damage that leads to a lawsuit, the AEF personal liability coverage responds – up to $5 million coverage, which is in force 24/7. This practice has been adopted by facilities for years, and helps protect the operator by adding a layer of coverage between an injured person and the business. It’s a tried and true strategy of “deferral of risk” that is inexpensive and easily managed. In addition, each member of AEF is provided an “Accidental Death and Dismemberment Policy” that is very important and could, in fact, help the facility avoid legal action if a rider/member is hurt while at their facility.

These questions address just a few of the challenges that come from running a successful boarding operation. As an equine insurance specialist and a partner of AEF, we know the importance of good communication and information. If you have insurance questions, we have the answers and are happy to help. Insurance for horses and their people – it’s what we do.

Sincerely, Michael A. (Mike) King, Partner

Michael (Mike) King, CAIB, R.I.B.

Mike King is a partner at CapriCMW Insurance and the program lead for the PTSO programs across Canada. For more information, please call the Agri department at CapriCMW Insurance, 1-800-670-1877 or agri@capricmw.ca