Key Takeaways
- General liability insurance protects equine businesses from lawsuits if a customer is injured on the property.
- Property insurance reimburses costs to repair or rebuild barns, fences and other facilities damaged by events like fires or storms.
- Workers compensation insurance covers medical expenses and lost wages for injured employees.
Introduction
Equine businesses like horse farms, stables and boarding facilities involve inherent risks that make certain types of insurance critical. The top 3 insurances equine operations should strongly consider are general liability, property and workers compensation coverage.
General Liability Insurance
General liability insurance provides important protection for equine businesses against financial losses from accidents and legal claims involving interactions with horses. It covers expenses such as medical bills, property damage repairs, lost income, and legal defense fees resulting from incidents that occur during business operations.
General liability insurance is highly recommended for equine businesses due to the risks of accidents that can easily happen around large animals like horses. Equine activities such as riding lessons, trail rides, boarding horses, and interactions with horses pose risks of injuries to customers, visitors, employees, and client’s horses. Incidents such as bites, kicks, falls from horses, and property damage from loose horses are examples of risks general liability insurance helps cover.
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Based on typical factors considered for general liability insurance pricing such as industry risk level, business operations, revenues, number of employees, claims history, and location, the estimated average annual pricing for general liability insurance for businesses in the Horses and Other Equine Production industry (NAICS Code 112920) is around $2,000-$5,000 per year. The price range takes into account that this agricultural industry involves risks from large animals, riding/equine activities, and facilities/property maintenance. Larger operations and those with training/riding facilities tend toward the higher end of the range. The final price offered can vary depending on insurer underwriting.
Estimated Pricing: $2,000-$5,000
Property Insurance
Property insurance plays an essential role in protecting equine businesses from financial losses due to damaged or destroyed property. It reimburses costs to repair or rebuild facilities like barns and fences damaged by events like fires, storms or theft. Coverage also pays for losses of horses, equipment and other property, as well as lost income during facility repairs. This provides stability and peace of mind for equine operation owners and operators.
Estimated annual costs for property insurance for equine businesses average around $5,000, though pricing varies based on property values, risks, and claims history.
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Based on typical pricing factors such as property values, risks of loss, and previous claims, the estimated average annual pricing for property insurance for businesses in the Horses and Other Equine Production industry with NAICS code 112920 is around $5,000. This price was derived from industry reports and averages of small businesses in agricultural production that maintain property such as barns, equipment, and livestock on large land areas which presents higher risks than typical commercial properties.
Estimated Pricing: $5,000
Workers Compensation Insurance
Workers compensation insurance provides crucial financial protection for businesses in the horses and other equine production industry. Some key benefits of workers comp insurance for these agricultural operations include covering medical expenses and lost wages for injured employees, as well as protecting the business from lawsuits. Common injuries can occur from handling large animals, operating farm equipment, working in certain hazardous conditions, and from accidents that may happen while working with or around horses and other equines. The top use cases for workers compensation are injuries sustained from direct interaction with horses, equipment, hazardous terrain, and other animals that may be present on an agricultural property. The average estimated pricing for workers compensation insurance in this industry is around $1.80 to $2.00 per $100 of payroll.
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Based on industry research, the average workers compensation insurance rates for the Horses and Other Equine Production industry with NAICS code 112920 is around $1.80 to $2.00 per $100 of payroll. This rate is derived from analyzing historical claims data specific to the inherent risks involved in horse farming, training, breeding and boarding activities. These activities involve risks of injuries from lifting, animal handling, falls, kicks and bites.
Estimated Pricing: $1.80-$2.00/100 of payroll
Conclusion
Maintaining the right business insurance tailored to the equine industry helps protect an operation’s assets, facilities, livestock, employees and bottom line. General liability, property and workers compensation insurance provide essential financial security against accidents, legal claims and other unforeseen events involving horses and farming activities.