What is liability insurance and do I need it? Liability insurance is insurance designed to protect a policyholder against claims alleging that one’s negligence or inappropriate action resulted in bodily injury or property damage to another.
In this mini-series, we will offer some points to consider for:
• Facility Owners
First up will be facilities owners/managers.
Do you have adequate limits of liability?
Injuries resulting from equestrian accidents can be quite severe. Consider the value of claims for multiple fractures, concussions and even paraplegia. Medical bills for current and future injuries, plus lost time from work can be significant. Depending upon the size and usage of your facility, we would suggest a liability limit no less than $1 million. Greater exposures may warrant higher limits or an excess/umbrella policy, offering greater protection.
If you rent your facility, does your lease require you to name the property owner as an additional insured on your policy?
Read your contract carefully. Most owners will require this and failure to do so could lead to an action for breach of contract.
Read your lease carefully and know what you are agreeing to. Make sure it specifies exactly what you are leasing. The property should be defined and along with it, any equipment that may be included. Know who is responsible for maintenance of common areas, fences, systems, equipment, etc.
Do you have equine liability signs posted?
In order to be protected by equine liability statutes, proper signs must be posted that are visible to everyone. Make sure the proper statutes are referenced.
Stay tuned next week for the second part of this article.
It is worth the time and effort to have a discussion with your insurance agent to be certain you are fully protected. Horses Daily's Mary Phelps is a Markel Equine, Farm and Liability Specialist. Working with her CSR Tracey Scharf they are available to help guide you through this process. email@example.com, firstname.lastname@example.org, 1-800-572-3286. Many of the needed forms and information can be found on our website equineinsurancedaily.com.