Legal Aspects of Horse Management

Lesson Three – Insurance

Quiz

Q1: It has been your lifelong dream to own a horse farm, and thanks to stock options from your day job and an upturn in the stock market, you finally have the resources to buy a horse property. At your facility, you plan to take in some boarders to help defray the cost of ownership, and you also plan to give lessons. What types of insurance coverage will you need for your business?

(a) A farm and ranch policy

(b) A farm and ranch policy, plus general commercial liability

(c) A farm and ranch policy, plus care, custody and control

(d) Care, custody and control, plus general commercial liability

(e) Named perils, commercial liability and care, custody and control

(f) A farm and ranch policy, general commercial liability and care, custody and control

Q2: After thinking about your dream a bit, you decide that the “real money” is in running a breeding operation. You own several valuable stallions and decide to offer training and breeding services on your property. What types of insurance coverage will you need for your breeding operation?

(a) Major medical and mortality insurance for your stallions

(b) (a), plus general commercial liability

(c) (b), plus a farm and ranch policy

(d) Race horse owner’s insurance, plus major medical and mortality insurance

(e) Care, custody and control, plus (c)

(f) Who needs insurance?

Q3: You receive two quotes for care, custody and control insurance. One quote includes the following coverage: $5K per occurrence, with an overall limit of $10K. The premium is $600 for a six-month period, payable in advance, and the deductible is $1000. The policy’s underwriter is rated A by A.M. Best & Co. and you like the agent. The second quote includes the following coverage: $20K per occurrence, with an overall limit of $100K. The premium is $1000 for a six-month period, payable in advance, and the deductible is $1500. The policy’s underwriter is rated “A-“ by A.M. Best & Co. and you neither like nor dislike the agent. You have 25 horses boarded at your property, and each of them is worth at least $10K. Which policy, if any, will fully insure you for care, custody and control liability?

(a) Policy #1

(b) Policy #2

(c) Neither policy – the per occurrence limits are too low

(d) Neither policy – the aggregate limits are too low

(e) Neither policy – both the aggregate limits and the per occurrence limits are too low

(f) Neither policy – the deductibles are too high

E-mail answers to mailto:rachel@equinelegalsolutions.com