In an industry where a cranky or spooked mount can send a daydreaming rider to hospital in a heartbeat, the extra cost of liability insurance is a must.
“You can’t be without it,” said Lindy Barron of Barron-Echlin Stables in Claresholm, Alta.
For many would-be stable operators, fear of being sued is a common reason why they haven’t taken the plunge.
Mike King, a partner at Capri Insurance, said the cost of any particular policy depends on revenue, the owner’s experience, claim history and the number of horses and visitors to the operation.
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“It’s not as expensive as people think. It should be considered a predictable and affordable business expense,” he said.
“If someone is opening a gas station, they expect to have an insurance cost as part of their business plan. Only very recently has the horse industry had that same mentality. But the courts treat them both in exactly the same way.”
For example, the cost of $1 million in commercial general liability insurance for a horse stabling operation with gross annual earnings of $60,000 could range from $500 to $2,000 per year.
An additional aspect of coverage, and one that general farm insurance typically doesn’t cover, he added, is the care, custody and control of non-owned horses or property. If a boarding horse breaks its leg, the owner of the stable would likely have to compensate the owner.
“If you own the property where the accident occurs, you will be sued – guaranteed,” said King. “However, they would have to allege and prove ultimately that some physical deficiency of the premises caused the accident to occur.”
With horses, a potential hazard might not be immediately obvious to an operator. One example would be an indoor riding arena in spring, where the sound of huge chunks of snow sliding off the metal roof and crashing to the ground can panic horses unaccustomed to the noise.
“Being a horseman, I can tell you that when you’re inside that arena and the snow is coming off the roof, the horses believe that the world is ending and there is not a horse on the planet that will stay calm,” he said.
“We have had claims where the owner of the facility was sued because they ought to have known that the snow comes off the roof every spring and when it does, there is a hazard.”
While injury settlements in the United States have often soared to astronomical heights, most in Canada are within reasonable bounds. Few lawsuit settlements in this country have exceeded $1 million. However, the trend is toward ever-larger payments, and lawyers can be found who will take almost any case on contingency, King said.
“Lawyers are plentiful and the case law is increasingly bountiful. Precedents are multiple, so we are becoming increasingly litigious just like our neighbours to the south.”
Insurance for riders and horse owners is also available at a reasonable cost.
For example, the Manitoba Horse Council offers third party, personal liability insurance of up to $5 million as part of its membership fee.
For a family membership, the annual cost is $100, and $50 for single members.
