Equine Niagara News -

Liability Insurance: Should you have it?

Definitely! For your own protection as well as others.

In the December 24th issue of Equine Niagara News we received a letter to the editor over a young girl's concerns that yet another cost had been added to showing - a cost that she felt was making it harder for her to attend the shows she wanted to attend. We promised to investigate further into which shows require liability insurance and which do not.

First let's start by which local shows require proof of liability insurance. We have contacted the executive of the local clubs and asked their requirements and received the following response.
Bertie Willoughby Saddle Club - not at this time
Camberwell Schooling Shows - not at this time (unconfirmed)
Cedar Ridge Jumper Shows - not at this time
Dressage Niagara - OEF membership required for shows and clinics
Dry Lake Saddle Club - not at this time, but discussions have been had regarding coverage
Dunnville Saddle Club - not necessary, but you are required to pay a $5.00 membership day pass fee if you are not a member of the club, to be covered under the Club's insurance
Niagara Cup Series - not at this time

Ontario Barrel Racing Association - proof of liability insurance is required to compete whether by private policy or OEF membership

Port Colborne Saddle Club - proof of liability insurance is required to compete whether by private policy or OEF membership
Saddle Up Niagara - proof of liability insurance is required to compete whether by private policy or OEF membership
Spring Creek Bubblegum Shows - not at this time (unconfirmed)
Trillium Hunter/Jumper Shows - OEF membership mandatory
A Level Hunter/Jumper Shows - OEF membership mandatory

The list could go on and on. However, regardless of whether the organization you wish to show at requires liability insurance, if you own, lease, borrow a friend's, take lessons, it is highly recommended that you have coverage for you and the horse. The most economical means of doing this is through the coverage offered by becoming a member of the Ontario Equestrian Federation (OEF). For as little as $60/year for an adult, or $50/year for a junior (family memberships $200) you will receive $5,000,000 personal liability insurance for you and your horse and this is only a small part of being a member of the Ontario Equestrian Federation - but a benefit worth it's weight in gold should an incident occur. Please note, this coverage does not cover stables, trainers,,etc., being paid for the use of their horses, a separate policy is required for this purpose. The liability insurance offered by the OEF is to protect the individual horse handler/rider.

What happens when your horse breaks away from you and injures another person or causes damage to property? Does that other person simply say, "that's okay, don't worry about it"? I think not. Injury to that person or property could cause financial issues that would not have been present if it weren't for your horse injuring them or causing damage to their property. This person will want financial restitution at a minimum. Sure, that person may have been your best friend prior to the incident - but that doesn't mean this will stay the case after a major incident. What if they can no longer work and provide for their family? What if they need physical therapy, medications, or have to replace property that your horse damaged? What if they can't afford this? They will sue! Without liability coverage, you open the doors to major financial issues of your own! The legal fees alone will get you, never mind the ultimate settlement if this person wins their law suit. And of course, you know, this person won't sue for the cost of a fence post broken or the fee of the physical therapy. They will sue for loss of wages, medical expenses, and so much more. Can you afford this? Probably not. What will a law suit do to your own finances and well-being? The cost of owning a horse is substantial. The cost of a law-suit is far greater! Can you honestly afford not to pay the $60 membership fee to give yourself piece of mind to the tune of $5,000,000 in liability coverage?

In future articles we will cover the cost of personal liability insurance for you and your horse through private insurer's - you will see the benefit of the OEF's membership. We will also get further into the liability insurance required for boarding and lesson stables. In the meantime, below is more information from the OEF's insurance provider for your consideration and further knowledge.

Michael King of Intercity Equine Insurance Services reports that "liability arising from horse ownership/use has been a prominent issue in the culture of the equine community for more than a decade. The number of reported incidents that lead to legal action being taken continues to increase from coast to coast." Intercity Equine Insurance Services holds the policy that allows liability coverage through the OEF membership.

"Individuals who own, lease, borrow, compete, ride recreationally, take lessons once a week - whatever the case -- all have a liability exposure that is undeniable. Horses can do unpredictable things and the insurance offered through the OEF membership is an effective and inexpensive way to protect that exposure - anywhere in the world. In terms of cost of this type of broad coverage outside the OEF's membership fee, I can say with confidence that insurance premiums are based on a 'spread of risk', so it should come as no surprise that any alternative is certainly going to cost more than a membership in the OEF … and besides, the OEF and it's counterparts across Canada are without question, effective advocates for their constituents beyond insurance and deserve the support of all equine enthusiasts."

Below is a reprint (with permission) of the liability coverage you receive as part of your OEF membership:

A FEW QUICK FACTS ABOUT YOUR COVERAGE

IF YOU, THE MEMBER have paid your annual membership dues and are therefore in "good standing" with the OEF, YOU, THE MEMBER are provided with TWO important and separate insurance benefits AUTOMATICALLY;

1. $5,000,000 of PERSONAL LIABILITY insurance that WILL protect YOU, THE MEMBER if YOU, THE MEMBER are SUED by a third party because a horse that YOU, THE MEMBER own or lease causes PROPERTY DAMAGE OR BODILY INJURY TO A THIRD PARTY.

A few examples of situations where YOU, THE MEMBER, HAVE COVERAGE;

Example 1. The horse kicks or bites someone causing bodily injury

Example 2. The horse kicks a car or escapes on to a neighbour's land causing property damage

Example 3. "Someone else" is holding your horse and the horse causes property damage or bodily injury to a third party.

Example 4. The definition in the policy regarding "who is an insured" now INCLUDES immediate family of the member, when the membership is issued in the name of a JUNIOR member - this means if the child or the junior owns the horse, then parents are AUTOMATICALLY COVERED!

The policy is IN FORCE 24 hours a day, seven days a week, anywhere in the world. So if you board your horse elsewhere, keep your horse at home, go for a hack down the road YOU, THE MEMBER are covered.

The policy will provide liability protection regardless of the number of horses you own or lease and IS NOT ATTACHED TO ANY DESCRIBED OR INSURED HORSE(S).

a) The insurance policy DOES contain an EXCLUSION if your horse is used for COMMERCIAL purposes. This means that if you receive compensation for the use of your horse - (e.g. "money" or "trade of value" for riding instruction, or reduced board for the use of your horse by someone else in a lesson) this policy will NOT respond.

b) The insurance policy DOES contain an EXCLUSION related to claims that could be brought against you, IF you allow others to RIDE your horse (in some cases). If you do allow others to RIDE your horse, then be sure that the person RIDING the horse is also a member of the OEF OR is employed in whole or in part in the horse business (coach, trainer, groom etc.). If the person RIDING your horse meets either of these criteria, then YOU, THE MEMBER ARE COVERED.

c) The insurance policy DOES contain an EXCLUSION related to claims made between immediate family members. (e.g.- the parent/spouse of a member will not be covered by this insurance if their own child / spouse sued them)

d) Part of the liability coverage provided through membership addresses the exposure that could arise IF YOU, THE MEMBER transport (TRAILER) a horse that DOES NOT belong to you (in a non-commercial situation). If that non- owned horse were injured as a result of your negligence and IF that other person decided to sue you for compensation for their loss, the OEF policy will respond - up to a limit of $5,000 for any one horse. Please note - this is NOT commercial horse transport insurance and is NOT life insurance for the horse being transported this is liability insurance to protect you if you are sued by a third party.

e) Coverage as provided by this program is subject to a deductible of $1,000.00 for Property Damage claims.

2. $30,000, Accident, Death or Dismemberment coverage if YOU, THE MEMBER suffer a catastrophic and permanent injury (or death) related to an incident where horses are involved. This coverage is in force 24 hours a day, seven days a week, and covers the member anywhere in the world.

PLEASE NOTE: There is NO FRACTURE benefit or DENTAL benefit related to this AUTOMATIC coverage.

If you require more comprehensive and individualized coverage, please contact me and I will be happy to assist you. We have a life, health and disability broker available to all members who is quite familiar with the nuances of the sport of horses.

I trust that this information will help you recognize just some of the very real benefits of membership. The OEF and its Board take the insurance benefits provided to you very seriously (as we do) and Intercity Insurance Services is very proud to be associated with this group.

A final note that we want to share with you is the fact that Intercity Insurance Services Inc. has recently been awarded a FIVE-YEAR commitment from the OEF to continue as the EXCLUSIVE insurance provider. This unprecedented commitment means that our brokerage has been recognized as providing a superior service to ALL members and also means that we must (and will) continue to provide information and products of value.

If you have ANY questions related to the insurance that Intercity Insurance Services Inc. provides to you, I do hope that you will contact our office so that we may help.

HAVE A GREAT YEAR!

Michael A. (Mike) King,

Principal Broker and Owner

mking@intercityinsurance.com 15221 Yonge Street Aurora, ON L4G 1L8

(905) 841 - 8200 or 1 888 394 - 3330 www.intercityinsurance.com

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