When you are a riding instructor, trainer or farm owner; from time to time you may either have a horse to sell, or you may act as an agent in the sale of a horse. When you have a Commercial Equine Liability policy and someone was to be injured while "test-riding" a horse, and they were to sue you for negligence for there injuries, then that is something that your policy may cover. What your Liability policy does not cover - is the horse as a product.
For instance, you sell a horse and after the new owner receives the horse, the horse becomes lame. The new owner does some further digging and finds that the horse was treated for a previous issue that was not disclosed to them and now they want there money back. In your Bill of Sale it states that the horse was sold - AS IS. Now the new owner has consulted with an attorney and the attorney has decided that they have a case. This is not something that you have coverage for under your liability policy - as it does not cover horses as a product.
Susan Quinn, Esq., wrote a very informative article about this very subject for the HORSE JOURNAL. Several states have laws in effect for "Equine - Lemon Law". Know the laws in your state and talk with your Insurance agent on what you would, and would-not be covered for in the sale of a horse. Check out Susan' article at http://horse-journal.com/article/horse-turns-lemon-23788
Please contact Mary Phelps, an Equine Insurance Specialists with Markel Insurance Company, or Tracey Scharf, Office Manager to get more information of this very affordable coverage. 1-800-572-3286. Mon. - Thur. 9-4 and Fri. 9-1 EST.