Most of the property and liability insurance coverage needed by professional horsemen may be included on a Commercial Package Policy.
Depending on the scope of business operations a Farm Owners or Special Multi-Peril Policy will provide adequate coverage. These policies are usually divided into three sections — Property, General Liability, and Vehicles.
Under the Property section, you may insure any type of business personal property, with the exception of livestock mortality insurance. Property for your personal use and enjoyment is covered under the dwelling portion of the policy. Categories of coverage may include a permanent residence, a seasonal dwelling, and additional living expense in the event that the home becomes uninhabitable due to loss caused by a covered peril.
Many high-value items can also be insured– for example: jewelry, furs, fine arts, and cameras.
Additional portions of the policy are available to provide coverage for permanent structures, which are used in connection with your horse business, such as stables, sheds, garages, employee dwellings and bullpens.
However, business property is not just buildings; you may also have a sizable investment in business personal property. With a blanket form, this type of business personal property may be covered for a single amount of insurance. The following items can be included: tack equipment, hay and grain, tractors and implements, irrigation pipe and pumps, farm tools and livestock on a named peril or all-risk basis. The maximum amount of recovery is $500 per animal.
The type and number of perils the property can be insured against is flexible in order to meet your individual needs. All Risk coverage, you are insured for any physical loss or damage, with the exception of a limited number of exclusions.
The general Liability section of the policy is capable of protecting you for your legal liability arising from both your personal activities and the operation of your horse business. Coverage is provided for losses, which occur away from the premises. Medical Payments coverage is included for individuals injured on your property, regardless of who is responsible for the accident.
In many cases a family horse business is covered only for liability losses as provided by the personal liability coverage of their Homeowner policy. This type of situation creates a serious gap of coverage, because losses arising from business pursuits are excluded on the homeowner policy. This leaves the insured with a potentially catastrophic liability loss to self-insure with his or her own assets.
You have the option of including motor vehicles as a separate section of your Commercial Package Policy. Here again, you are afforded the convenience and price competitiveness of providing coverage for personal and business use of limited to pickups, autos, horse trailers and tractor trucks.
Any unlicensed motorized vehicle, for example, quads, golf carts, etc., should be specially described for physical damage and to include liability off the premises (like horseshows).
You can save money and eliminate gaps or overlaps in coverage by making the property and liability package concept work for your horse business.