Buying Horse Insurance Part 1

In this time of economic recession, one of the first areas of economy sought by most horse owners and farm owners is in the area of insurance. Under-insuring or foregoing insurance entirely may seem like a good idea to your pocketbook, but the smarter play is to carefully evaluate not only your current insurance needs, but also your insurance carrier, to make sure that you get the best deal that suits your own needs.

You may find that much of your required insurance needs are affordable with a careful eye at coverage scope and an evaluation of your carrier and their offerings. As an attorney who has represented many clients in litigation against those who don't have sufficient insurance, let me just say that the condition of not having sufficient insurance is one of the "circles of hell" that Dante did not get around to talking about in the Divine Inferno — you don't want to be there.

A Competent, Cooperative Agent
All these efforts begin by calling your insurance agent. Be aware that equine insurance is a specialty area for insurance agents, and not all agents can or will cover the risks associated with equine operations or ownership. Don't work with a beginner in this area — experience counts. Your agent should not only be willing to meet with you, but also to review your equine situation knowledgeably and be able to ask pertinent questions. If the agent doesn't know what colic is, drop him like a hot potato. Second, your agent should be able to run your situation by a number of carriers; not all carriers evaluate risk in the same way. You may be able to get a better deal from some carriers than others. Your agent is the one to work with the various entities and search out the best deal for you. If your agent is NOT willing to make this annual search, then you should remind him or her that this is the kind of service you expect. Also tell him that if you don't get this service, he won't get your business because you'll change agents.

No matter who you go to, make sure that your agent is willing to use his or her expertise to help you find the best coverage for your operation. For example, it makes little financial sense for a boarding establishment that focuses on high-end jumpers to skimp on care, custody, and control insurance and risk a lawsuit related to a horse accident to a boarder's horse. Another example is having a boarder barter arrangement for stall help, and not getting workman's compensation insurance — this will put you at risk for large fines and crushing penalties in the event of an accident.

Insurance Requirements
Ok, now let us turn to the issue of what kinds of requirements a policy could have. First, consider that insurance is essentially a contract between an insured and the insurance company. Therefore, the usual rules of contracts apply, which means that these contracts are in writing, and both sides will "lawyer up" in the event of a problem. So, horse people should carefully read and understand what they sign. For some, this will be difficult because teams of lawyers make a very good living writing these policies. Get your agent to help you by translating the policy, or call an equine attorney if you don't understand the terms. But no matter what you do, make sure you know what you're buying. All I can guarantee from your policy review is that you'll learn some things you didn't previously know. For example, you may find that coverage for a loss only applies if you notify the company within a certain timeframe of the loss. If you don't notify in a timely fashion, the coverage won't apply. But all knowledge is good knowledge in this regard, so arm yourself.