Featured Article (March 2008)

1) Are your a business? Do you bring in revenue from equine activities? If so, congratulations, you are officially a business and as a business you need commercial insurance. Typical homeowner’s policies do not cover business activities or buildings in which a business activity takes place.

2) Include/Exclude. Not every insurance policy is the same. Be sure to look at what is covered and, more importantly, what is excluded. If you do not understand the policy ask your insurance agent to clarify it for you. If he or she does not have the time, get a new insurance agent.

3) Ratings. Insurance companies are not all the same. Ask your insurance agent about your company’s A.M. Best Rating (A.M. Best is an independent rating agency which rates all insurance companies from A++ and lower). Also ask about their reputation in the industry for paying claims, and how long they have been in the equine industry. These should all be factors in your decision making process.

4) Care, Custody, Control. If you have boarders in your stable or pasture you need "Care, Custody and Control" coverage. Almost all insurance policies exclude property (or horses) that are in your "Care, Custody, and Control." You must have specific coverage added to your policy for this protection.

5) Lawsuits. The Virginia Equine Statute cannot protect you from being sued. Yes, the statute puts protections in place against judgments, but you may still have to defend yourself against a frivolous lawsuit. Insurance policies typically provide coverage for defense expenses such as hiring an attorney.

6) Don’t try to hide specific equine activities. Make sure when completing applications you outline all of your operations and where your revenue streams are. This is the only way to adequately cover your exposures and make sure your insurance policy does what it is designed to do.

7) Employees. If you employ three or more full or part time employees, you are required by Virginia law to carry Workers Compensation insurance. Independent contractors are not included in your employee count; however, putting someone on a 1099 Form does not automatically include them as an independent contractor.

8) Be sure your tack, saddles and horse-drawn vehicles are covered. These are considerable investments and your insurance should provide coverage for these items regardless of whether they are at a show, on the trail, or in the tack room.

9) Trip Transit coverage is a necessity for anyone who transports other peoples horses, even once.

10) Events. Advise your insurance company of any horse shows or special events that might be taking place. Have a charity trail ride coming up or the local 4-H coming over? These are activities that need to be added to your policies.

Max Francis says, "You are never too young to learn about horses! Read the Virginia Horse Journal."