Imagine Sarah, an equine massage therapist, working with a restless mare during a session. Suddenly, the mare strikes out, breaking some boards in the stall or worse, injuring the handler. Who is responsible here? Should Sarah be worried about the liability risks involved with her work? This situation is just one example of the unforeseen liability risks faced by self-employed equine therapists or technicians who work in the unpredictable world of horses.
As equine health practitioners, you operate in a unique environment where accidents can happen despite best efforts to ensure safety. Understanding and mitigating these risks is essential for protecting both you and your clients. While no amount of insurance can stop accidents from happening, proper coverage can protect you and your business from the financial fallout. Let’s explore different types of insurance and understand what you need to communicate to your agent.
General Liability with Coverage for Equine Exposure
Commercial General liability (GL) insurance covers third-party bodily injury and property damage claims resulting from negligence or accidents related to your services. [“Third-party” refers to someone who didn’t intend to be involved]. For equine practitioners, this could include incidents like not securing a horse properly during treatment, leading to an escape, and then property damage or injury to a third-party. Luckily, insurance can help cover the cost should your services result in a claim or lawsuit for these injuries or damages.
It’s important to understand that not all liability policies cover equine or animal risks. In fact, most typical GL policies specifically exclude it! You should definitely ensure that your coverage includes equine-related services so you aren’t paying for coverage that wouldn’t apply when you need it most. Only certain companies in the market offer coverage for equine-related exposures. It’s even more limited as to which companies will insure the specific modalities that equine practitioners offer.
It’s recommended to work with an agent rather than applying for coverage directly online. Insurance related to equine health modalities and therapies is still developing, so it’s not guaranteed that an underwriter would even have a rating available for your services. Be sure to talk to an agent who can confirm that your offerings will be accepted by their carrier. (It may seem silly, but make sure your agent understands the difference between what you do vs. equine-assisted therapy.)
Care, Custody, & Control Coverage
Care, Custody, & Control (CCC) coverage protects practitioners from the claims resulting from a horse’s injuries under their direct care, regardless of negligence. For instance, if a horse flips in cross-ties during a session and gets hurt, CCC coverage would cover that claim.
It's important to note the distinction between CCC and mortality/medical insurance, as CCC is purchased by the service provider (you), while mortality &/or medical insurance is only available to the horse owner. Even if the horse owner’s policy covers the injuries, their insurance company could turn around and subrogate against a practitioner’s policy for the cost since it happened as a result of the services. It’s never wrong to have CCC coverage when you work on non-owned horses.
CCC coverage is offered on a “per horse / overall” limit, which means you can choose the amounts for which to be insured. A common practice among horse trainers is to include in their contracts and waivers that the client agrees to only hold them responsible for values up to a certain amount (often $10,000) regardless of the horse’s actual value. Of course, it’s recommended to speak to an attorney on the amounts and exact wording that would best protect your interests, depending on the value of the horses you work on.
Professional Liability
Professional liability insurance, also known as errors and omissions insurance (E&O), protects practitioners from claims related to professional negligence or failure to perform services as promised. This is connected to the client’s expectations of the therapy’s results, which are always going to be subjective. It’s vital to communicate clearly with your clients when outlining treatment plans, noting the risks and limitations of the treatment to minimize the likelihood of lawsuits for lack of results. You should also build a good relationship with their Veterinarian, so there aren’t miscommunications that lead to disappointed or confused clients. Specific modalities or services that involve machinery or equipment may require additional coverage under professional liability insurance as a result of their associated risks or contraindications.
Communicating with Insurance Agents
When selecting insurance coverage, you should work with an agent who understands the services you are providing. Agents should know enough to ask the right questions, such as: What modalities are you offering? Do you use any specific equipment? How many horses do you treat vs. what is your overall income from each of these services? Do you handle the horses yourself, or do you ask the clients to manage them?
Be sure to communicate ANY and ALL services or situations with your agent, as they can help you identify ways to protect yourself. When you add a new type of service, don't assume it will be included in the coverage. Be sure to connect with your agent and confirm. Knowing the claims process is also essential. Gathering documentation and evidence to support potential claims is crucial for ensuring smooth claim resolution. Ultimately, seeking out specialized agents with experience in equine insurance can help you navigate the complexities of insurance coverage tailored to your services.
Conclusion
Proactive risk management and regular review of insurance policies are essential for equine practitioners to protect themselves and their businesses. By understanding the various types of insurance coverage available and working with experienced agents, practitioners can mitigate liability risks and focus on providing quality care to their equine clients.
About the Author:
Danielle Aamodt offers leadership coaching designed for the horse industry & helps human-herds develop environments where everyone can belong, connect, & collaborate to become the most productive & effective team they can be. Danielle was a horse-crazy kid who worked her way up over the course of 20 years from grassroots barns to leading a top-level equestrian sport. Her education includes a Bachelor's in Equine Studies from Centenary University (NJ) and an MBA from Murray State (KY). She has had the pleasure of working as a groom/assistant trainer, supporting horse show management & events, working with small animal rehab at a Veterinary hospital, selling equine & farm insurance (since 2014), and as USEF's Director of Driving for over 5 years leading the FEI Driving teams internationally and managing the driving sport on a national level. For several years, she also taught courses online as an Adjunct Professor for Post University’s undergrad equine program.
Currently, Danielle offers consulting services through Enso Equine Services to improve organizational health & culture in the horse industry, while also selling Equine & Farm insurance.
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