Do you have horses in your care that are not owned or leased by you? If you handle, train, service, care for, or board non-owned horses, you have a care, custody and control liability exposure. Liability insurance is available for this and you should carefully consider your need for this insurance protection. You could be held liable by the horse’s owner or insurer of the horse’s life for the value of the horse, plus veterinary and surgical expenses. You may also require costly legal defense if sued. This type of coverage insures you against financial loss if a non-owned horse in your care becomes sick, injured or dies and the owner (or their insurance company) attempts to hold you responsible for the loss because of your negligence. This coverage also provides legal defense whether a case has merit or not.
Commercial General Liability Insurance is your premises and business operations coverage. It provides bodily injury and property damage coverage for third parties; customers, clients, guests, and those who may trespass on your property, who are not you and your family members, volunteers, or employees.
Care, Custody & Control Liability Insurance is a secondary type of liability insurance that provides coverage for the loss of a horse that is in your care, custody or control, but not owned or leased by you. Both coverages serve a different purpose and are important if you have a care, custody and control exposure. For example, if a horse escapes from its enclosure, gets into the road, and is hit by a car, your GL policy would respond for the injuries to the people in the car (bodily injury) and on the damages to the car (property damage), while Care, Custody & Control Insurance would respond on the loss of the horse.
It is important to know that Care, Custody & Control Liability Insurance is not included in a Commercial General Liability Policy [CGL] unless requested by you and added by endorsement. It is also important to know that some companies do not offer this type of insurance to horse operations. And some only sell it as a separate policy, and you may not even be asked about purchasing it unless you request it. Ark Agency’s applications ask about care, custody and control and we are able to include it with your GL Policy. If you need this important coverage, carefully review all the insurance quotes you receive to determine if care, custody & control coverage is included or not.
When completing Ark’s application, be sure to ask for this additional coverage by completing the Care, Custody & Control portion of the application and choosing the limits that are right for you. You will have a choice of limits that are based upon the average and maximum values of a horse in your care (but not owned by you), and the combined total value of all the horses in your care at one time. The latter would be your potential maximum loss, for example, as in the event of a barn fire, smoke damage, or building collapse. If at one time, you re for ten non-owned horses at a maximum value of $10,000 per horse, the limits you might choose would be $10,000 maximum value per horse/$100,000 aggregate (total possible loss that might be paid).
We also offer Care, Custody & Control Insurance as a separate policy.
Keep in mind that Care, Custody & Control Insurance does not take the place of the horse owner carrying their own life and major medical insurance policy on their horse. Your negligence must be a factor before an owner is paid for the loss of a horse. It is important to advise horse owners that because they have the financial investment in their horses, it is up to them to insure their financial loss should the horse become, sick, injured or die.
1. A horse you have in training or are showing is injured while you are working it.
2. While hauling a boarder’s horse to a show, the trailer unhooks and the horse is injured.
3. A fence is damaged or barrier gates are left open at your farm and a boarded horse gets into the road and is hit by a car.
4. A boarded horse gets injured or dies while in your care or on your property because of an unsafe condition of your fence, your pastures, shelters, toxic plants, or a problem of the barn or stall that you should have known about and failed to correct.
Your insurance needs are unique, therefore we believe in person to person service. Call or e-mail an Ark Agency Representative for an estimated premium, policy and company details, and qualification requirements. We work with several insurance companies and rates and coverage conditions vary. We will help you determine which application to use and advise on how to put insurance in force.
*General information is provided on this insurance topic. Acting on our coverage recommendations does not guarantee coverage if you have a loss or claim.