Friday, June 20, 2008
What Kind of Insurance Does a Riding Instructor Need?
If you are teaching lessons and receiving compensation for it, you will need insurance. Although Equine Legal Solutions is a law firm and does not sell insurance, we often assist clients in determining their coverage needs and in negotiating coverage issues with their insurers. Here are the types of insurance we recommend, and reasons why they are advisable to have.
Commercial Liability Insurance
Commercial liability insurance covers most types of liability claims, including negligence. Even if you have a good lesson contract with a liability release, you can still be sued. In the United States, it seems that almost anyone can sue almost anyone else for anything. Therefore, one of the most valuable roles of commercial liability insurance is to pay for your legal defense in the event that you are sued (not to mention any actual judgment that might be issued against you). The average negligence lawsuit defense runs well into the tens of thousands of dollars in a case that goes to trial, so the cost of commercial liability insurance is money well spent.
Teaching at a Facility You Don't Own
If you give lessons at a facility owned by someone else, the facility owner will typically require all instructors to provide proof of insurance, and to name the facility owner as an additional insured. Even if you give lessons at a stable that has its own commercial liability insurance, you will still want to have your own liability insurance. Your activities may not be covered by the facility's policy. Even if they are covered, if the facility's commercial liability insurer has to pay out on a claim related to your negligence (or alleged negligence), the insurer may pursue you for reimbursement if you are not listed as an insured party under the policy.
Using a Borrowed or Leased Horse for Lessons
If you are giving lessons on a horse that does not belong to you, and your student is injured or killed, the horse's owner could be sued. Accordingly, the horse owner may wish to take out an individual horse owner's liability policy.
Equine Mortality, Major Medical and Loss of Use Insurance
If you have valuable school horses or are leasing or borrowing a valuable horse, you may want to consider insuring them. Mortality insurance generally makes sense only if you could not afford to replace the horse without undue financial hardship. Likewise, major medical insurance is recommended if you could not afford a several-thousand-dollar vet bill without breaking the bank. Loss of use insurance may be advisable if you have a horse whose value is heavily dependent upon his or her use (e.g., as a breeding stallion). Do be advised that some loss of use policies provide that the insurer may opt to take possession of the horse before they are obligated to pay the claim. If this would be unacceptable to you, loss of use insurance probably does not make sense for your situation.
Still not convinced you need insurance? See our Top Five Foolish Reasons Not to Get Liability Insurance.
Commercial Liability Insurance
Commercial liability insurance covers most types of liability claims, including negligence. Even if you have a good lesson contract with a liability release, you can still be sued. In the United States, it seems that almost anyone can sue almost anyone else for anything. Therefore, one of the most valuable roles of commercial liability insurance is to pay for your legal defense in the event that you are sued (not to mention any actual judgment that might be issued against you). The average negligence lawsuit defense runs well into the tens of thousands of dollars in a case that goes to trial, so the cost of commercial liability insurance is money well spent.
Teaching at a Facility You Don't Own
If you give lessons at a facility owned by someone else, the facility owner will typically require all instructors to provide proof of insurance, and to name the facility owner as an additional insured. Even if you give lessons at a stable that has its own commercial liability insurance, you will still want to have your own liability insurance. Your activities may not be covered by the facility's policy. Even if they are covered, if the facility's commercial liability insurer has to pay out on a claim related to your negligence (or alleged negligence), the insurer may pursue you for reimbursement if you are not listed as an insured party under the policy.
Using a Borrowed or Leased Horse for Lessons
If you are giving lessons on a horse that does not belong to you, and your student is injured or killed, the horse's owner could be sued. Accordingly, the horse owner may wish to take out an individual horse owner's liability policy.
Equine Mortality, Major Medical and Loss of Use Insurance
If you have valuable school horses or are leasing or borrowing a valuable horse, you may want to consider insuring them. Mortality insurance generally makes sense only if you could not afford to replace the horse without undue financial hardship. Likewise, major medical insurance is recommended if you could not afford a several-thousand-dollar vet bill without breaking the bank. Loss of use insurance may be advisable if you have a horse whose value is heavily dependent upon his or her use (e.g., as a breeding stallion). Do be advised that some loss of use policies provide that the insurer may opt to take possession of the horse before they are obligated to pay the claim. If this would be unacceptable to you, loss of use insurance probably does not make sense for your situation.
Still not convinced you need insurance? See our Top Five Foolish Reasons Not to Get Liability Insurance.
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