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RISK MANAGEMENT AND COMMERCIAL EQUINE BUSINESS OPERATORS

A basic tenet of any sound risk management plan is to transfer risk wherever possible. In our world of horses, transfer and spread of risk are common strategies.

The reader is already the recipient of a number of benefits from their membership in AEF (including this edition of Alberta Bits), one of which is the low cost and broad liability coverage provided in partnership with CapriCMW Insurance Services Ltd.

You already know that CapriCMW insures each member of AEF for liability if a horse they own, lease, or borrow causes bodily injury and / or property damage and a lawsuit ensues.

For those of you who operate a facility and have customers coming to your place of business to receive any service, you already know that you need to be / should be insured by a Commercial General Liability (CGL) insurance policy that recognizes and covers all of your operations. This is the best and most simple example of deferral of risk (from you as the operator – to the insurer who will respond if a claim happens). In our daily work at CapriCMW, we service every type of commercial equine operation with products and programs designed specifically for this industry of horses. A question we hear regularly from equine business operators is, “How can we keep insurance costs as low as possible?”

Here are strategies to consider:

Join AEF as a Business Member and be recognized for being committed to community involvement and embracing best business practices to ensure a safe and healthy environment for your customers. That Business Membership earns credits toward CapriCMW Insurance Services Ltd. products.

Use boarding agreements to clarify the extent of services offered and the legal responsibility of the operator and the customer.

Use acknowledgment of risk forms to help everyone understand that being around your operation and horses carries some risk that they need to embrace and sign off on.

Mandate that all boarders, lesson students, horse owners – EVERYONE – join AEF. This is a simple and effective way for you as the business owner to defer risk associated with your operation. A few examples:

The student who takes lessons from you benefits from being part of the AEF community and learns to understand how significant the horse industry is in Alberta and they, as a participant are a part of it – and are covered by AD&D coverage if they suffer a catastrophic injury due to an interaction with a horse at your farm.

The boarder / horse owner benefits through AEF membership by having $5,000,000 of personal liability insurance in their name so if their horse is the cause of an issue – not only are they protected but just as importantly, the boarder’s coverage will help to mitigate the liability that you as the facility operator have.

It needs to be made clear that facility operators are exposed – just by being in business and allowing customers to receive a service for fee. It just makes sense to defer risk wherever you can, and through Alberta Equestrian Federation, there are easy and cost effective ways to do just that.

Sincerely, Michael A. (Mike) King, Partner

Michael (Mike) King, CAIB, R.I.B.

Mike King is a partner at CapriCMW Insurance and the program lead for the PTSO programs across Canada. For more information, please call the Agri department at CapriCMW Insurance, 1-800-670-1877 or agri@capricmw.ca