The COVID-19 pandemic has hampered the growth of leisure pursuits and small businesses that cater to those hobbies, but not horse ownership: More than 17% of horse owners and managers expect to own or manage more horses in 2022 than in 2021, while less than 10% expect to own fewer.1

For those with the means and the desire, equine ownership represents a passion that other types of pursuits can’t match. It often starts off as a recreational pastime and may evolve to participating in shows and competitions, giving lessons and owning a stable or horse farm.

Though the rewards of horse ownership can’t be quantified, there are risks that can be, and it is essential to know the unique risks of horse ownership for those just starting out or considering an expansion of their current situation.

Managing liabilities for equine operations

There are many resources to consult, not the least of which is a well-established network of peers, which brings with it a strong awareness of potential liability and knowledge of industry best practices. Sometimes though, situations can be overlooked and the resulting liability substantial.

When riding horses evolves into a business and offering boarding, breeding and instruction, consider taking the following steps to reduce risk:

  • Require a release hold harmless agreement for those who use a horse owner’s services or facilities, which releases the horse owner from liabilities when someone is injured using the owner’s property or services. This includes those who board horses at a stable or who take riding instruction from horse owners. Hold harmless agreements are governed on a state-by-state basis, so owners need to ensure they are in compliance with applicable state laws.
  • Post state law signs near stables that say horses are unpredictable animals, and those entering are personally liable for any incidents. As with hold harmless agreements, these requirements vary by state.
  • Practice good upkeep and maintenance. Risk management makes it incumbent upon owners to have a well-maintained facility with proper fencing.
  • A Care, Custody and Control liability policy will cover a stable owner for horses owned by others. Factors in cost and limits include the number of horses allowed by zoning, how many instructors work at the facility, how many horses are boarded, and the custody and control for specific animals or schedule of animals.

Insurance for horse and equine operations

For a single horse, a traditional homeowners insurance policy usually suffices, as long as the animal is only ridden for personal use. If the horse goes off premises to shows, parades, or is taken for riding lessons somewhere offsite, the owner needs a Personal Equine Liability policy for protection.

For those wanting to own multiple horses or expand their hobby into a business, there are other types of insurance to help cover risks.

To cover animal mortality (inclusive of theft), a Livestock Mortality and Major Medical policy can fit the bill. There are numerous options in this policy that can cover major medical bills, emergency colic, surgical coverage, infertility and loss of use.

Some people extend their horse ownership to owning a horse farm, warranting a Farm Package policy. This coverage includes protection for dwellings, barns, stalls and arenas, with factors such as the size of the operation determining cost. Most all of the coverage needed in the course of becoming a business can be addressed through a farm package policy, with previously mentioned coverages included.

Contact a HUB insurance expert on high-net-worth matters to ensure you’re fully and adequately covered the lifestyle you’ve earned.

1 Equus Magazine, “Survey shows stability in horse ownership statistics” July 2021.