Equine insurance experts answer your questions about insuring Thoroughbreds for the breeding and auction realms. Email us at [email protected] if you have a question for an insurer.
QUESTION: Are there policies or protections unique to people consigning horses, as opposed to the owners of the horses themselves?
BRYCE BURTON: Consignors should have a Workers' Compensation and General Liability policy in place prior to stepping foot on the sales grounds. The Workers' Compensation policy is put in place to protect the consignor in the event that an employee is injured while on the job. This coverage includes both full-time and part-time workers.
The General Liability policy will protect the consignor in the event that an incident were to occur within the scope of their operations that could potentially result in legal action being taken against the company. This includes, but is not limited to, a horse causing bodily injury or property damage, leased barn damage as a result of the consignor's use, etc. General Liability limits vary from $100,000 to $1 million with the option to purchase umbrella coverage as well. The insured consignor will also be given the opportunity to purchase Equine Care, Custody, or Control coverage in addition to the General Liability.
QUESTION: What is an Equine Care, Custody, and Control (CCC), and when is it a good idea to consider placing coverage?
BRYCE BURTON: Standard General Liability coverage excludes coverage for personal property (horses for example) while in your care, custody, or control. This coverage fills that void by offering the policyholder protection from liability for damage to non-owned horses that are in your care, custody, or control. Therefore, CCC coverage is essential for all horse operations which involve non-owned horses, including boarding, breeding, and training.
We recommend that CCC be placed as soon as an operation takes possession of a non-owned horse. This is especially true for consignors who are caring for high-valued bloodstock. The CCC limits that are put in place will depend on the average head and value of non-owned horses that the policyholder boards at any one time. There is no need for a separate policy, as this coverage can be written as a package with the General Liability.
Bryce Burton is a property and liability specialist for Muirfield Insurance. He is from Frankfort, Ky., where he grew up an avid race fan. His Thoroughbred racing fandom combined with a collegiate internship in the insurance industry, culminated in a start in the equine insurance field. Bryce has been with Muirfield Insurance since 2014, following his graduation from Transylvania University in Lexington.
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