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View Full Version : What type of insurance do you need to board horses



Justice
May. 6, 2010, 07:53 AM
My friend is almost done putting up her indoor arena. She's asked if I want to keep my filly at her place as my husband and I still have not found a farm (that's not exactly true, we found one, but the people who own it really like living there ;))

She asked me to find out what kind of insurance she needs to take on a boarder, and a ballpark cost. We'd be jumping. Apparently her current insurance carrier is a placeholder until she gets the horses home, etc., and I don't want to call insurance carriers and ask for quotes on someone else's property. Does anyone know anything about this? Does it matter how many boarders you have, or do you pay the same amount regardless? Does something like this fall under someone's personal umbrella policy? Could I ask any more questions? TIA!

findeight
May. 6, 2010, 08:02 AM
Best way to go is called "care, custody and control" and it is a specific addition to a policy. Good way to describe the fact the barn owner does have 100% care, custody and control the majority of the time when the actual owner is off the property.

The CCC reflects the boarding situation and is in addition to the various standard liability, personal injury, property damage and so forth. Price varies according to activities allowed and whether or not somebody is giving instruction.

englishivy
May. 6, 2010, 08:51 AM
The CCC reflects the boarding situation and is in addition to the various standard liability, personal injury, property damage and so forth. Price varies according to activities allowed and whether or not somebody is giving instruction.

Sorry, but this is not correct.

And I know this because?.....I am a licensed insurance agent employeed by an insurance company that deals strictly with equine insurance. ;)

The CCC policy on its own covers an equine professional in the event of a loss for horses that are in his/her "Care, Custody, & Control" and not owned or leased by him/her. Usually people get it for boarding, but depending upon the policy terms, it can also include a trainer that is riding a client's horse and it gets injured, or someone who does transportation.

So if she wants to be covered in the event that something happens to YOUR horse and you sue her for damages (ie she threw a lit cigarette into the hay, resulting in a fire and your horse perishes), this is the policy she should get.

As far as liability, it will do nothing. And I can assure you her HO policy won't cover it either.

For that she will need a commercial equine liability policy or a farmowner's policy. The difference between the two is the the CEL is just for liability situations (boarding, camps, lessons, etc; usually obtained by those who lease facilities or are freelance trainers) and the FO includes structrual coverage for barns, tack, equipment, etc as well as the liability. Most companies let you do a "pick and choose" kind of policy in which you elect coverage for the areas of liability exposure specific to your situation.

The costs of a FO policy vary greatly and can only be quoted with an application. The CEL policy usually has a minimum premium that if the applicants exposure is small, they still pay that mimimum premium. For my company, the minimum for a $500,000/$1M policy is $300 per year; $1M/$2M is $500 per year.

For complete coverage, she should get both a CEL/FO and a CCC policy. And an additional note is that the CEL/FO policy will also include liability coverage for HER horses, which her HO policy may or may not do even if you (or another boarder) were not there.

findeight
May. 6, 2010, 09:10 AM
Sorry Ivy, thought I did say it was in addition to the other policies.

But thank you for a factual description.

Might also mention that you can get additional liability as owner of a horse that is boarded elsewhere to cover you should your horse cause damage or injury when off the property. Not a bad idea if you show...about $400 for a million in liability coverage on mine last time I carried it.

We had an incident years ago when a drunk plowed into the pasture taking out 30 yards of fence at 2am and 6 horses wandered out. Nothing happened, mercifully. Another more recently at another farm-wind blew down a tree that took out a fence. Unfortunately that one led to a car accident and major injury, as in airlifted out. In this state, horse owner is liable.

Obviously, OPs friend needs to sit down with her insurance carrier.

englishivy
May. 6, 2010, 12:27 PM
Sorry Ivy, thought I did say it was in addition to the other policies.

But thank you for a factual description.

you're welcome!! :D



Obviously, OPs friend needs to sit down with her insurance carrier.

This.

There are so many variables involved that her best bet is to talk to a reputable insurance agent, preferably one that specializes in equine related policies.

My Home Owner's Insurance went sky high this year (thanks to claims from water and hail damage from our crazy weather), so I tried to shop around. I was STUNNED by how many companies said "no thanks" once they found out I had horses...and I hadn't even gotten to the part where I said I was commercial & had seperate liability coverage :rolleyes:.

Point being, she also needs to talk to her HO insurance carrier to make sure there aren't any gaps in coverage.

Justice
May. 6, 2010, 09:21 PM
Thanks, guys! Obviously, she needs to talk to an agent. She needs to get a good farm person, because she's just using her homeowner's right now. So Ivy... maybe if you're with a National Company you could PM me your info.

We are at the very early stages of trying to figure out what we want to do, as I thought I'd have my own place by now, and while she'll have an arena, her barn's not built. This has helped a lot, as I thought it would be thousands of dollars, not hundreds, which is exactly what we wanted to know as a starting point. F8, good point, we have a large umbrella policy through my husband's work that has eased our mind through countless silly situations. My theory on insurance is always that the more you have, the less likely anything is to go wrong.

englishivy
May. 6, 2010, 10:25 PM
PM sent!

Wanderluster
May. 6, 2010, 11:25 PM
Justice,
I have both FO/ CCC insurance on my property. Your state might have many companies that issue insurance for both but here I found it difficult to get my property properly insured. I did find a national company through USEF FWIW. ;)

maxxtrot
May. 7, 2010, 08:48 PM
ivy, i would love to talk to you too. pm me as well. thanks