Question:  Trail riders and outfitters travel into the wilderness with horses. What sort of legal risks are there involved in this sort of activity, and what type of insurance is recommended?

Answer:  As above, the outfitter should have Commercial General Liability insurance that addresses the business activities undertaken.  The operator can be held legally liable for the safety of their guests and a good insurance policy will protect the operator if a customer decides to sue them

Mike King is the horse industry specialist at Capri Insurance and is responsible for the risk management and insurance programs which benefit various regional, provincial and national equine associations.

Question:  What risks are there for those who run boarding and training facilities, and what sort of liability insurance is recommended?

Answer:    For anyone who offers or provides a service to the general public, there is a liability exposure that needs to be insured under a policy categorized as “Commercial General Liability” (CGL) insurance. This is a specific wording that addresses the business activities and when issued properly, covers the business owner for all commercial exposures they have. This is a very different wording than a “Personal” liability policy which most of us have on a standard farm or home owner’s policy. In fact, most Personal liability policies specifically EXCLUDE commercial or business operations. The definition of a “commercial” exposure might best be summarized as an activity that includes compensation for the service provided (money or value in kind) Examples of commercial activities that require Commercial insurance include Boarding of horses for others, riding instruction, training of horses for others, transport of horses for others etc.  In the end, if you provide a Commercial service of any sort, you need Commercial Liability insurance.

Mike King is the horse industry specialist at Capri Insurance and is responsible for the risk management and insurance programs which benefit various regional, provincial and national equine associations.

Question:  How does one determine value between different types of coverage? 

Answer:  Value is a very subjective issue. If the consumer is satisfied that they have purchased a policy of insurance that provides them with appropriate coverage, then the policy has “value”. Of course, this implies that the consumer understands the nuances of the policy and has asked questions of the broker to gain comprehension.

Mike King is the horse industry specialist at Capri Insurance and is responsible for the risk management and insurance programs which benefit various regional, provincial and national equine associations.

Question:  Could you explain how someone would go about finding a quality insurance provider for themselves their horses, or their equine business or facility?

Answer:    The short answer is to seek out an insurance broker and insurance company that understand what it is that you do and fully understands the exposures that you have. Brokers who are horse people themselves are the obvious choice. I suggest that a good place to start the search is to network with other horse people that you know and / or check with your equine association (SHF, AEF, HCBC etc.) as they are an excellent resource for credible suppliers.

Mike King is the horse industry specialist at Capri Insurance and is responsible for the risk management and insurance programs which benefit various regional, provincial and national equine associations.

Question: What types of activities are covered under the homeowner’s policy? Will homeowners insurance cover horses?

Answer:  As you might expect, home owners insurance is designed, first and foremost, to cover your home and your personal property and to provide a measure of (typical) personal liability coverage. Some homeowners insurance policies will extend coverage to recognize the personal liability associated with the ownership of a horse… others won’t. The same variable applies to coverage on the horse itself. Suffice to say that insurance related to horses is a specialized field and the best advice is to seek advice and coverage from a broker who is also an equine specialist.

Mike King is the horse industry specialist at Capri Insurance and is responsible for the risk management and insurance programs which benefit various regional, provincial and national equine associations.

Question:   Who should insure their horse(s) and why? What does typical coverage include, and what extra options are there? How would a person know how much to insure a particular horse for? What happens if/when the value of the horse increases (e.g. more training) or decreases (e.g. due to an injury)?

ANSWER:    There are two basic types of insurance available in the marketplace to cover horses.

The first is called “Named Perils” coverage which provides coverage on the horse’s life for death arising from a specific list of “Named” perils (causes) that are shown in the insurance policy and can vary from insurer to insurer. This list of Named Perils will typically include fire, lightning, theft, transport, collapse of a building, being struck by a vehicle etc. A Named Perils policy does NOT usually include causes of death arising from sickness (colic etc.) and as a result, is relatively inexpensive.

The second is called “Full Mortality” coverage and this is a far more comprehensive approach to insuring the horse. A Full Mortality policy will include coverage for all Named Perils, but then goes on to include death arising from most other accidents AND sickness. Most insurers limit the eligibility of this type of coverage to horses that are younger than 17 or 18 years old, are sound and are in good health (a veterinarian certificate will probably be required before the coverage is placed). Full Mortality insurance policies also can offer an option to extend coverage even further to cover Major medical/ surgical coverage to reimburse the client for emergency medical expenses that may be incurred.

On the issue of valuations, any of us in the horse business know that the value of any horse is very subjective and know that all horses are truly only worth what someone is prepared to pay on a given day. Underwriters use purchase price as a solid point of reference when establishing the limits of insurance provided and then adjust as necessary to recognize training, show experience, soundness or health issues etc. For homebred horses, stud fees are used as a point of reference. Experienced underwriters know that the value of the horse is inevitably going to change over time (one way or another). Hopefully, communication between the consumer and the insurer is frequent and open so that when changes need to be made, they are.

Mike King is the horse industry specialist at Capri Insurance and is responsible for the risk management and insurance programs which benefit various regional, provincial and national equine associations.

Question:  I have an 11-acre property with a house, a 20 x 50 barn, and four horses that belong to me.  I was told (unsubstantiated) that my house insurance would cover 3rd party liability if my horses were to get loose on the road etc and would also cover my barn.  Could you please elaborate as to whether this information is correct or do I need a rider for the barn and liability insurance with my current provider or should I have a separate policy just to cover the horses and barn?

Concerned property owner

Dear Concerned,

Without seeing your actual policy, it is impossible to confirm that you do (or do not) have the coverage you need/ think you have.

Let me tackle the following:

a)    Liability. As an “occupier” of land, you are required to contain and control any and all animals that live on the property. This rule of liability applies to horses and other large animals as for cats and dogs. If an animal escapes from your land and causes a problem on the road or at a neighboring property, there is little doubt you could be / would be held responsible.

Most property insurers recognize the liability that arises from the ownership of small (household pet type) animals. That said, many insurers charge a separate premium for liability coverage arising from owned horses (on a per horse basis) while others may offer coverage on a very limited basis.

b)    Property.  Most insures require that buildings used for agricultural purposes be described (scheduled) specifically on the policy (and charge a separate premium) for coverages to apply. \

An experienced broker who understands rural farm risks, should have no difficulty in providing one policy to address all of the exposures described here.. House, barn, the horses and liability exposures etc.

I suggest that you take the time to read your policy and if you still have questions, request that your broker give you a written reply to your inquiry. The broker is responsible to make sure that you understand the coverages you do have… That said, clients also have an obligation to advise the insurer of the full scope of activities / exposures that can impact the policy. Communication is the key and finding a broker who understands the (horse) world in which you live.

Mike King is the horse industry specialist at Capri Insurance and is responsible for the risk management and insurance programs which benefit various regional, provincial and national equine associations.

Hello and Welcome!

Blogging and social networking as a communication environment is one of those great mediums that we are very excited to be a part of.

Our clear objective in joining all of you at HorseOwnerToday is to post information on the web about risk management and insurance as it relates to horses and equine activity for everyone’s benefit.

That said, let me tell you about myself and how I got to where we are today.

Some of you may know me as, Mike King the “Insurance Guy”. I am proud to say that my articles regarding insurance over several years in a variety of publications and public speaking Q and A sessions across Canada have been read and seen by a wide and large audience.

However, many of you may not know that I have been involved in the horse industry for more than 40 years – riding, training, managing a barn, competing, teaching, judging, horse show organizing. I seem to have seen just about all of it – and for the last 17 years I have been a dedicated insurance broker specializing in the development and delivery of insurance products and services across Canada – all related to horses.

Drawing on these years of interacting with horses and their people there is no doubt in my mind that the basic needs of the equine community are the same no matter where the horses are. We all thirst for information on ways to deal with life with horses and the best information comes from others who have been there, done that.

I am hopefully that over time, I can share solid, consistent and non-partisan information about many insurance related topics including:

a) What insurance is (and what it is not)
b) How you can use insurance to your advantage
c) How to avoid duplication in coverage
d) What type of insurance you ‘really need’ for you and your horse

This great thing about this site and blogging in general is that all of us get to have a conversation and with that all said, I really hope to hear from you with questions/comments – whatever!

Mike King is the horse industry specialist at Capri Insurance and is responsible for the risk management and insurance programs which benefit various regional, provincial and national equine associations.

Welcome to the new "Ask The Insurance Professional" section of Horse Owner Today - check back soon for new postings!