Most horse clubs and associations are built around the love of horses and the opportunity to benefit the common interests of their members.
You’re not out to make a profit. But if your horse club or association is a registered nonprofit or you use the income to cover the costs of operation or raise money for charities, you need to insure it for liability.
What you’ll discover in this report:
- Your level of risk
- Insuring multiple clubs or chapters under one policy
- Common claims against horse clubs and associations
- How to plan ahead
- Coverage offered by a commercial general liability policy
- Other coverages members should carry
- Other types of insurance to consider
- Types of clubs and associations that apply for insurance
The Level of Risk for a Horse Club or Association
For a small horse club or association with minimal club activities, there’s generally a low level of exposure for liability.
For example, a horse club managed by a local board or directors that holds monthly member meetings, small social gatherings and a few shows a year likely has an income of less than $20,000 a year. Pricing for this type of club would be based on the low level of exposure because most of the events are member-only events.
But higher-risk clubs would require higher premiums. If your club has a large membership, high income and hosts large public events (in attendance and participation) with large fundraising activities and many competitions, you fall into the higher-risk category.
Whether your horse club or association is large or small, it’s important to remember that accidents occur – especially where large animals like horses are involved.
Can Multiple Clubs or Chapters Be Insured Under One Policy?
It’s generally not advisable for several chapters to share an insurance policy because they’d also share the limit. If you do decide to share a policy between multiple chapters of your club, a liability of up to $5 or $10 million is recommended, depending on the number of chapters. Keep in mind that most insurers need proof of affiliations of the clubs. Plus, each group would also need to sign and follow the risk reduction standards.
Top Claims Involving Horse Clubs?
The most common insurance claims involving horse clubs and associations include:
- Injured spectators while on show grounds or watching an event. This can occur when spectators get too close to an animal, risers collapse, or spectators trip and get hurt.
- Horses that escape a rider and injure other riders and employees, damage parked vehicles, or run into traffic and cause an accident. Situations like these could turn into a large claim that affects the club. It also generally requires the animal to be put down.
- Non-member injuries while riding their horse in a club-sponsored event.
How To Plan Ahead
We know you care about the horses and members. Below are steps you can take to protect yourself against potential accidents.
Enforce barn rules
Develop rules for your environment for both horses and people. Train staff members so they understand rules and procedures. Document procedures.
Plan for emergencies
Emergencies happen. But the more prepared you are, the better chance you have of providing proper care to your horses. Preparation can minimize the severity of any accident.
Develop semi-annual inspections of your property
By inspecting your premises for potential hazards, you can take care of them before an incident occurs.
Prepare a written waiver and review your province’s Occupiers’ Liability Act
Your province’s Occupiers’ Liability Act could state that the stable owner/operator owes a duty of care to the people who enter their premises, which assures that any property they bring on your premises is also reasonably safe.
Anyone who participates in horse activities on your premises needs to complete and sign your province’s waiver, if applicable. Make sure to keep signed forms on file and safely stored. You are free to restrict, modify or exclude this duty of care through your written waiver.
Follow Provincial Safety Regulations
Check your provincial safety regulations regarding helmet use for minors and if helmets need to meet certain criteria, such as ASTM, BSI or European Safety Standards. Footwear is also often regulated (i.e. hard-soled footwear with a heel of no less than 1.5 centimeters).
Purchase an equine club liability insurance policy
Protect yourself and your club or association with a brokerage that knows horses and your business. You want to make sure that any legal fees are covered, with claim costs and settlements to ensure that, in the case of an accident, your club or association doesn’t suffer a financial loss.
What’s Included in a Commercial General Liability Policy?
A commercial general liability policy protects the horse club and its members while on club or association property. Whether or not your group owns property, your club or association is at risk of liability exposure whenever business functions are involved. Third parties that participate in any event can make claims for bodily injury or property damages.
As a member, no matter what the level, you should be concerned for the club or association’s financial protection.
Many of these concerns can be alleviated by purchasing a commercial general liability policy that covers:
- Legal defense costs: You can save your club or association the financial burden of court costs if you’re sued, whether or not the case has merit.
- Claims or settlement costs: Without this policy, the club or association could be held responsible for bodily injury and property damage claims.
What Other Coverages Should Members Carry?
If something happens to a member at a club-related activity, they cannot hold the horse club or association liable. As members, they are also insured by the club. Most will have their own insurance policies involved in horse ownership. Some recommended coverages include:
- Personal liability insurance: Most members carry this as part of their homeowners or farmowners policy. This protects non-paid board members or a director volunteering on the association board who could otherwise be held responsible for making decisions related to the club or association.
- Workers compensation and employer’s liability insurance: If the club or association employs any staff, you might require a separate policy. Even if no money is exchanged, but there is in-kind payment, it could qualify.
- Equine liability insurance: Any members who are horse owners should carry equine liability insurance on their horses for accidents caused by their horses. If not part of their homeowners or farmowners policy, a horse owners policy should be purchased.
What Other Coverages Should Horse Clubs and Associations Consider?
There is some exposure for liability not covered by the horse clubs and association policy. We recommend the following additional coverages to protect all members and the financial viability of the club or association:
- Health coverage: The purchase of a separate policy can provide additional coverage or medical expenses for a member injured during a club activity. Our in-house benefits advisors can help you decide if you need additional coverage.
- Workers compensation and employer’s liability insurance: If the club or association employs any staff, you might require a separate policy. Even if no money is exchanged, but there is in-kind payment, it could qualify.
- Equine directors and officers liability: This is additional coverage we recommend horse clubs and associations purchase to protect their directors and officers.
What Horse Clubs and Associations Apply for Club and Event Insurance?
All clubs and associations have risks, whether they’re formed as a local/regional group or an association focused on promotion, competitions or showing horses. Types of groups that should consider horse club and event insurance include:
- Riding/saddle clubs
- Driving clubs
- Polo clubs
- Hunt clubs
- Pony clubs
- 4-H clubs
- Trail riding clubs
- Breed associations
- Horse show organizations
- Horseback orienteering clubs
- Horse rescue associations
Get Horse Club and Association Insurance Today
At Henry Equestrian, Powered by NFP, we understand horses and we want to make sure your horse club or association is protected. Contact us today to learn more or click on below for a free, no-obligation quote.