FAQs About Liability Coverages
Liability policies are available in all U.S. states except Alaska and Hawaii.

Whatever your equine activity, you should consider obtaining liability coverage.

Equine Limited Liability Laws may help you provide a defense in the event of an equine incident, but they will not prevent you from being sued. Liability policies are designed to help protect you if you are sued by a third party who is injured or whose property is damaged. The policy covers defense costs and pays claims for which you are legally liable up to the policy limits.

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Equine Personal Liability

2. Equine Commercial General Liability Coverage
3. What is a double aggregate? Triple aggregate?
4. What is excess coverage?
5. What is the professional liability endorsement on the CGL application?
6. What is the equine personal liability endorsement on the CGL application?
7. I own a boarding facility and allow several independent instructors and trainers to work here. I do not pay them, they are paid directly by their clients. Do I need liability coverage for this? Should I insist they have liability coverage? Can I add them to my policy?
8. I am an Independent Instructor and teach out of many facilities. What kind of a policy do I need?
9. The owners of the facilities where I work have asked that they be named as Additional Insureds on my policy. What is an Additional Insured, and how much does it cost to add one?
10. I have my clients sign a release of liability. Why do I need a liability policy?
11. I am a very careful person. I have never had any incidents. Do I really need coverage?
12. We have an equine limited liability law in our state. This protects me from being sued so I don't need an insurance policy, right?
13. I am part of a local equestrian association. What type of coverage do we need?
14. I only want liability coverage for one event. Can I get just a single event policy?
15. I board and train horses and someone mentioned I should look into Care, Custody and Control coverage. How is this different from the CGL policy?
16. All of the horses at my barn are insured by their owners, so I don't need CCC coverage, right?
17. I occasionally trailer boarded horses to shows for their owners. Will the CCC cover me for trailering?


1. Equine Personal Liability

Many horse people assume they have coverage for their equestrian activities under their homeowner's policy, but if you check with your agent, you may find that you do not.

The Equine Personal Liability coverage provides financial protection for horse people by providing coverage for bodily injury or property damage caused by your personal horse to a third party. With the limits available, Equine Personal Liability Coverage is an excellent way to provide protection for your horse activities whether showing, trail riding, or simply enjoying your horses in your own backyard.

See the application for the available limits and premiums. Policies include coverage for up to five named horses with the option of adding more.

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2. Equine Commercial General Liability Coverage

If you are a professional equestrian (a person who performs a horse-related service for a fee or for barter such as boarding, instruction, training, buying/selling, breeding, officiating, organizing or hosting shows and clinics, etc.), you should have an Equine Commercial General Liability (CGL) policy.

This policy protects you in the event a third party sues you for bodily injury or property damage. A third party is generally someone who is not a family member or employee. If you have employees, you should obtain workman's compensation or employer's liability coverage. Also, you should make sure that any independent contractors or vendors that work with you show proof of their own liability insurance and ask that you be named as an Additional Insured on their policy, especially if they are an independent instructor and/or trainer working at your facility.

Coverage under the CGL policy provides for defense costs as well as pays claims for which you are legally liable up to the policy limits. Occurrence limits are available at $300,000, $500,000 and $1,000,000. Double aggregates, triple aggregates, and excess coverage are also available.

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3. What is a double aggregate? Triple aggregate?
The double aggregate doubles the amount of coverage that is available during the policy period but does not increase the occurrence limit. Triple aggregate triples the amount of coverage that is available during the policy period but does not increase the occurrence limit.

For example, if you have a $1 million per occurrence limit and select the double aggregate, the policy will pay a maximum of $1 million per any one occurrence, and a maximum of $2 million in the year. So you could have two, separate $1 million claims paid in the same year, or four separate $500,000 claims. But if you had a single, $2 million claim, only $1 million would be paid by the policy for that occurrence. This is why you should consider excess coverage.

Triple aggregate triples the amount of coverage that is available during the policy period but does not increase the occurrence limit.

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4. What is excess coverage?

If you decide on the $1 million occurrence limit, and either the double aggregate or triple aggregate, you may also purchase an excess policy. This has the same coverage terms and provides additional limits available in $1 million increments.

For example you could have $1 million per any occurrence, $2 million aggregate per year, and then add $1 million excess policy which allows you a maximum of $2 million to be paid on any one occurrence, and a maximum of $3 million aggregate paid in any one year.

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5. What is the professional liability endorsement on the CGL application?
This coverage will protect you in the event you are sued in respect of a claim directly resulting from any negligent act, error, or omission arising from your professional equestrian activities. For example, if you are a professional and make a ruling or decision to the detriment of a competitor and they sue you, this coverage that would provide for your defense fees and pay claims for which you are legally liable for up to your policy limits.
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6. What is the equine personal liability endorsement on the CGL application?
If you own or lease horses that are for your own personal pleasure or show and are not involved in your business, you can add this endorsement to your CGL policy. This coverage will protect you in the event one or your horses injures a third party or damages their property and you are sued. As with the other liability coverages, it will pay for your defense costs as well as pay any claims up to the policy limits.
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7. I own a boarding facility and allow several independent instructors and trainers to work here. I do not pay them, they are paid directly by their clients. Do I need liability coverage for this? Should I insist they have liability coverage? Can I add them to my policy?


Yes, you should get coverage for the riding instruction that takes place at your facility even if you do not teach the actual lessons. Unfortunately if there is an accident during one of the lessons and a rider or bystander is injured or their property is damaged, you could be sued along with the instructor even though you may have had nothing to do with causing the accident.

Yes. You should insist the independent instructors and trainers have their own liability coverage. If they do, you should ask to be named as an Additional Insured on their policy. You should also request a Certificate of Insurance showing that they have a policy in force and that you have been named as an Additional Insured.

If they do not have their own policy, you can add an independent instructor or trainer to your policy. This will only provide coverage for them when they are working at your facility, but not if they leave your premises. If they want off-premises coverage, they should get their own policy.

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8. I am an Independent Instructor and teach out of many facilities. What kind of a policy do I need?

You can get a CGL policy for your riding instruction that will follow you wherever you teach and coach (i.e. various facilities, horse shows and events). It can also cover you for any clinics you may give.
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9. The owners of the facilities where I work have asked that they be named as Additional Insureds on my policy. What is an Additional Insured, and how much does it cost to add one?

An Additional Insured is a person who has a connection to your equestrian activities and therefore wants coverage under your policy in the event they are sued due to your actions.

An example would be an owner of a facility where you are an independent instructor. If you are giving a lesson and a student or bystander is injured, they most likely will also name the owner of the facility in the lawsuit as well yourself. By having the facility owners named on your policy, the policy will also provide them with a defense and pay claims up to the policy limits.

The cost of naming an Additional Insured to your policy varies with the policy limits. For a policy with a $1 million occurrence limit, the charge is $20 per Additional Insured.

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10. I have my clients sign a release of liability. Why do I need a liability policy?
Although it is a good idea to have clients read and sign a release of liability, this does not prevent you from being sued. A CGL policy would provide you with coverage for your defense costs and pay any claims up to the policy limits for which you are legally liable.
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11. I am a very careful person. I have never had any incidents. Do I really need coverage?
Hopefully your perfect record will continue, but unfortunately accidents can happen. Even though you may not be at fault, you still may be sued. The insurance policy provides for your defense fees which can be significant no matter what the circumstances of the accident.
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12. We have an equine limited liability law in our state. This protects me from being sued so I don't need an insurance policy, right?

Though the equine limited liability laws are a good first defense to help prevent frivolous lawsuits or a lawsuit arising from the inherent risk of equestrian activities, they do not protect you from being sued. Also, while most state equine liability laws refer to the inherent risk of riding and working around horses, they are not intended to protect you if your actions were considered negligent.

For example, if you are teaching a lesson to an experienced rider on her own horse using her own tack and she has a fall, most likely the equine limited liability law will help you as she should have understood the inherent risks of riding horses. But if you have a new student riding a school horse and the horse is too much for her to handle or the tack is unsafe and she is injured because of your negligence in matching her with the wrong horse or not checking the tack, the equine limited liability laws probably will not protect you.

In both of these cases, at the very least you may have to defend yourself, and the insurance policy will pay for this. The defense attorney may utilize the state equine limited liability laws and the liability releases to help defend you. If a claim or settlement is then paid, the policy will pay for that as well up to the coverage limits.

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13. I am part of a local equestrian association. What type of coverage do we need?


You should look into a Clubs and Associations policy. This is a liability policy that protects the club and its members in the event of a lawsuit by a third party for bodily injury or property damage. The policy will pay for your defense costs as well as pay claims up to the policy limits.

The basic policy covers the organization year-round for club member-only functions, and includes coverage for seven listed public event days with additional days available. A public event day is an event the organization runs such as a horse show, event, or clinic to which the general public is invited. This policy covers you for the actual event days and includes days for setup and takedown.

You can also add Additional Insureds to the policy as necessary such as a facility owner or landowner where events take place.

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14. I only want liability coverage for one event. Can I get just a single event policy?

Yes. You can purchase an Equine Event policy. This will cover you for a single horse show, equestrian event, or clinic. You choose the number of event days to be covered, and coverage is also provided for setup and takedown.
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15. I board and train horses and someone mentioned I should look into Care, Custody and Control coverage. How is this different from the CGL policy?
Care, Custody & Control (CCC) is what protects you in the event a horse that is in your care that you do not own (a boarded horse, horse in training, etc.) is injured or dies, and the owners sue you because they believe you or your employee were at fault. The standard CGL policy does not cover these situations, but you may add CCC coverage to your CGL policy or obtain CCC coverage by itself.
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16. All of the horses at my barn are insured by their owners, so I don't need CCC coverage, right?
Actually you still need this coverage. If one of those horses dies and the insurance company pays the claim but they believe you or your employee were negligent in causing the horse's death, you can still be sued by the horse owner or their insurance company. If this happens, the CCC policy will pay for your defense and pay claims up to the coverage limits.
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17. I occasionally trailer boarded horses to shows for their owners. Will the CCC cover me for trailering?

The CCC policy will cover you for incidental trailering of clients' horses (i.e. to a show, clinic, veterinary hospital) if you are found negligent in causing a horse's injury or death.

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Hallmark Equine Insurance Agency, Inc.
2130 Point Boulevard Suite 150 Elgin, IL 60123
(800) 734-0598 • (847) 844-8419 • Fax: (847) 844-8284
E-mail: info@hallmarkhorse.com
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