Farm Liability Insurance: Do you Have Enough Coverage?

Farm Liability Insurance: Do you Have Enough Coverage?

By Milly Carter, University of Missouri

"Over the past few years, market values for land and other farm assets have increased substantially, which has contributed to the growth of farm balance sheets," says Whitney Wiegel. "While many farmers’ asset values have increased, fewer farmers have taken the time to review their liability coverage to ensure that they are adequately protected."

Farm liability insurance protects farm owners from claims arising from unintentional injuries or damage to other people or property. An increase in total farm assets suggests a need for increased liability coverage to maintain consistent risk protection, Wiegel says.

"Many commercial farms have an umbrella insurance policy that provides liability coverage up to a certain threshold," he says.

For example, a farmer who has $1 million in liability coverage is protected from liability claims of not more than $1 million for the number of occurrences and coverage period specified in the insurance policy.

"While a $500,000 or $1 million policy may have been adequate for many farms 10 years ago, changes in farm profitability and asset values have altered many farmers’ insurance needs," Wiegel says.

To reduce exposure to loss, Wiegel advises farmers to regularly examine their balance sheets and coverage limits and ask themselves, "Is my liability coverage limit anywhere near the total value of my farm? If an accident were to occur, would my current insurance policy protect me from exorbitant losses?"

"If the answer to either of these questions is ‘no’ or ‘I don’t know,’ it is probably time to talk with your insurance agent," he says.

In addition, supplemental coverage may be necessary if your farm business has evolved to include nontraditional activities such as agritourism or direct sales to consumers.

Equine Warning Law, State-by-State. Do you Know?

Do you know what each state's policy is regarding the equine warning law? If not, you can find your state and check it out here:

The following states do not have an Equine Activity Statute:
 California, Maryland, Nevada, and New York..

Alabama - Warning - Under Alabama Law, an equine activity sponsor or equine professional is not liable for an injury or death of a participant in equine activities resulting from the inherent risks of equine activities, pursuant to the Equine Activities Liability Protection Act.

Alaska - No sign or contract language required.

Arizona - "A signed release acknowledges that the person is aware of the inherent risks associated with equine activities, is willing and able to accept full responsibilities for his own safety and welfare and releases the equine owner or agent from liability unless the equine owner or agent is grossly negligent or commits willful, wanton or intentional acts or omissions."

Arkansas - Warning - Under Arkansas law, an equine activity sponsor is not liable for an injury to, or the death of, a participant in equine activities resulting from the inherent risk of equine activities.

Colorado - WARNING - Under Colorado Law, an equine professional is not liable for an injury to or the death of a participant in equine activities resulting from the inherent risks of equine activities, pursuant to section 13-21-119, Colorado Revised Statutes.

Connecticut -  Assumption of risk by person engaged in recreational equestrian activities when, each person engaged in recreational equestrian activities shall assume the risk and legal responsibility of any injury to his person or property arising out of the hazards inherent in equestrian sports, unless the injury was proximately caused by negligence of the person providing the horse or horses to the individual engaged in recreational equestrian activities or the failure to warn against a dangerous condition, use, structure or activity by the person providing the horses or his agents or employees.

Delaware - Warning - Under Delaware Law, an equine professional is not liable for an injury to or the death of a participant in equine activities resulting from the inherent risks of equine activities, pursuant to 10 Delaware Code Section 8140.

Florida - Warning - Under Florida law, an equine sponsor or equine professional is not liable for an injury to, or the death of, a participant in equine activities resulting from the inherent risks of equine activities.

Georgia - Warning - Under Georgia law, an equine activity sponsor or equine professional is not liable for an injury to or the death of a participant in equine activities resulting from the inherent risks of equine activities, pursuant to Chapter 12 of Title 4 of the Official Code of Georgia Annotated.

Hawaii - No Signs or Contractual Language in Release Forms required.

Idaho - No Signs or Contractual Language in Release Forms required.

Illinois - Warning - Under the Equine Activity Liability Act, each participant who engages in an equine activity expressly assumes the risks of engaging in and legal responsibility for injury, loss, or damage to person or property resulting from the risk of equine activities.

Indiana - Warning - Under Indiana law, an equine professional is not liable for an injury to, or the death of, a participant in equine activities resulting from the inherent risks of equine activities.

Iowa - Warning - Under Iowa Law, a domesticated animal professional is not liable for damages suffered by, an injury to, or the death of a participant resulting from the inherent risks of domesticated animal activities, pursuant to Iowa Code Chapter 673.  You are assuming the inherent risks of participating in this domesticated animal activity.

Kansas - Warning - Under Kansas law, there is no liability for an injury to or the death of a participant in domestic animal activities resulting from the inherent risks of domestic animal activities, pursuant to sections 1 through 4.  You are assuming the risk of participating in this domestic animal activity.

Kentucky - Warning - Under Kentucky law, a farm animal activity sponsor, farm animal professional, or other person does not have the duty to eliminate all risks of injury to the participation in farm animal activities.  There are inherent risks of injury that you voluntarily accept if you participate in farm animal activities.

Louisiana - Warning - Under Louisiana law, an equine activity sponsor or equine professional is not liable for an injury to death of a participant in equine activities resulting from the inherent risks of equine activities, pursuant to R.S. 9:2795.1.1.

Maine - Warning - Under Maine law, an equine professional has limited liability for an injury or death resulting from the inherent risks of equine activities.

Massachusetts - Warning - Under Massachusetts law, an equine professional is not liable for an injury to, or death of, a participant in equine activities resulting from the inherent risks of equine activities, pursuant to section 2D of chapter 128 of the General Laws.

Michigan - Warning - Under the Michigan equine activity liability act, an equine professional is not liable for an injury to or the death of a participant in an equine activity resulting from the inherent risk of the equine activity.

Missouri - Warning - Under Missouri law, an equine professional is not liable for an injury to or the death of a participant in equine activities resulting from the inherent risks of equine activities pursuant to the Revised Statutes of Missouri.

Mississippi - Warning - Under Mississippi law, an equine activity or equine sponsor is not liable for an injury to or the death of a participant in equine activities resulting from the inherent risks of equine activities, pursuant to this chapter.

Minnesota - Signs are required to be posted, but there is no Contractual Language required in Release Forms.

Montana - No Signs or Contractual Language in Release Forms required.

Nebraska - Warning - Under Nebraska Law, an equine professional is not liable for an injury to or the death of a participant in equine activities resulting from the inherent risks of equine activities pursuant to sections 25-21,249 to 25-21,253.

New Hampshire - ATTENTION! Under New Hampshire law, a participant in equine activities assumes the risk of any injury, harm, damage, or death and any legal responsibility that may occur to participant resulting from the inherent risks associated with equine activities. Pursuant to R.S.A. 508:19, equine professionals are not liable for damages resulting from the inherent risks of equine activities.

New Jersey - Signs are required to be posted, but there is no Contractual Language required in Release Forms.

New Mexico - Signs are required to be posted, but there is no Contractual Language required in Release Forms.

North Carolina - Warning - Under North Carolina law, an equine activity sponsor or equine professional is not liable for an injury to or the death of a participant in equine activities resulting exclusively from the inherent risks of equine activities.  Chapter 99E of the North Carolina General Statutes.

North Dakota - No Signs or Contractual Language in Release Forms required.

Ohio - "A valid waiver for purposes of...this Section shall be in writing and subscribed by the equine activity participant or the parent, guardian, custodian, or other legal representative of the equine activity participant, and shall specify at least each inherent risk of an equine activity that is listed and that will be a subject of the waiver of tort or other civil liability."

Oklahoma - Except as provided in subsection B of this section, a livestock activity sponsor, a participant or a livestock professional acting in good faith and pursuant to the standards of the livestock industry shall not be liable for injuries to any person engaged in livestock activities when such injuries result from the inherent risks of livestock activities.  Oklahoma Statutes as Section 50.3 of Title 76

Oregon - "The limitations on liability provided in ORS 30.691 shall apply to an adult participant in the circumstances listed in subsection (1)(b) of this section if the participant, prior to riding, training, driving, grooming or riding as a passenger upon an equine, knowingly executes a release stating that as a condition of participation, the participant waives the right to bring an action against the equine professional or equine activity sponsor for an injury or death arising out of riding, training, driving, grooming or riding as a passenger upon the equine.  A release so executed shall be binding upon the adult participant........."

Pennsylvania - Signs are required to be posted, but there is no Contractual Language required in Release Forms.

Rhode Island - Warning - Under Rhode Island Law, an equine professional, unless he or she can be shown to have failed to be in the exercise of due care, is not liable for an injury to, or the death of, a participant in equine activities resulting from the inherent risks of equine activities, pursuant to this chapter.

South Carolina - Warning - Under South Carolina law, an equine activity sponsor or equine professional is not liable for an injury to or the death of a participant in an equine activity resulting from an inherent risk of equine activity, pursuant to Article 7, Chapter 9 of Title 47, Code of Laws of South Carolina, 1976.

South Dakota - Warning - Under South Dakota law, an equine professional is not liable for an injury to or the death of a participant in equine activities resulting from the inherent risks of equine activities, pursuant to Section 42-11-2.

Tennessee - Warning - Under Tennessee Law, an equine professional is not liable for an injury to or death of a participant in equine activities resulting from the inherent risks of equine activities, pursuant to Tennessee Code Annotated, title 44, chapter 20.

Texas - Warning - Under Texas Law (Chapter 87, Civil Practice and Remedies Code), a farm animal professional is not liable for an injury to or the death of a participant in farm animal activities resulting from the inherent risks of farm animal activities.

Utah - The notice provided by the sign or document shall be sufficient if it includes the definition of inherent risk in Section 78-27b-101 and states that the sponsor is not liable for those inherent risks.

Vermont - Warning - Under Vermont Law, an equine activity sponsor is not liable for an injury to, or the death of, a participant in equine activities resulting from the inherent risks of equine activities that are obvious and necessary, pursuant to 12 V.S.A. 1039.

Virginia - "The waiver shall give notice to the participant of the risks inherent in equine activities, including (i) the propensity of an equine to behave in dangerous ways which may result in injury to the participant; (ii) the inability to predict an equine's reaction to sound, movement, persons, or animals; and (iii) hazards of surface or subsurface conditions.

Washington - No Signs or Contractual Language in Release Forms required.

West Virginia - "Every horseman shall.. prepare and present to each participant or prospective participant, for his or her inspection and signature, a statement which clearly and concisely explains the liability limitations, restrictions and responsibilities set forth in this article."

Wisconsin - Notice: A person who is engaged for compensation in the rental of equines or equine equipment or tack or in the instruction of a person in the riding or driving of an equine or in being a passenger upon an equine is not liable for the injury or death of a person involved in equine activities resulting from the inherent risks of equine activities, as defined in section 895.481(l)(e) of the Wisconsin Statutes.

Wyoming - No Signs or Contractual Language in Release Forms required.






*Thanks to our friends at HorseInsurance Specialists for this information.

Why Individual Horse Owners Need Liability Insurance

Why Individual Horse Owners Need Liability Insurance

By Rachel Kosmal McCart Horses and the Law 2 Dec 2013   

As an equine attorney, I'm often asked to give presentations on equine liability. It's a very broad topic, of course, so I try to tailor it to the audience. Many of the audience members are individual horse owners. Here are some common areas of concern about liability, and some recommendations for how to address those concerns.

What if My Horse Injures Another Person or Another Horse?

Just because a horse injures someone doesn't automatically mean the horse owner will have liability for the injury. The horse owner must be at fault. Common scenarios in which the horse owner might be at fault:

The horse has a dangerous habit, such as kicking or biting. The horse owner fails to warn of the danger. The horse's dangerous behavior then causes injury to someone unaware of the horse's tendencies.

The horse owner rides or handles the horse in a way that is negligent. As a result of the negligent riding or handling, the horse then injures someone. For example, a show rider might run over another horse and rider in a crowded warm-up arena because the show rider is on their cell phone and not looking where they are going.

The horse owner fails to provide adequate fencing or stall door latches, and the horse gets loose. The horse runs out onto the road in an area that is not legally designated as "open range." A passing motorist doesn't see the horse in time to avoid an accident, and the motorist is injured.
The Role of Liability Releases

Liability releases serve two very valuable functions. First and foremost, they discourage people from suing in the first place. They can also provide a viable legal defense and prevent the person suing from winning their case. What they don't do is pay for the cost of your legal defense, and if you lose, the cost of the legal judgment. That's where insurance comes in.

What About Homeowners' Insurance?

Many horse owners are under the impression that if their horse injures someone, their homeowners' insurance will provide coverage. Only when the accident actually happens and they really need coverage do they find out that their insurance may not help them. Most policies have a very small cap on medical expense payouts. Some homeowners' policies will not provide coverage if the horse is not kept at home. Others have specific exclusions for livestock. In many cases, if you lease your horse, that will be considered a commercial use and therefore excluded from your homeowners' insurance. Best to check with your homeowners' insurance agent and read your policy before you actually need the coverage.

Liability Insurance for Individual Horse Owners

There are  liability policies specifically for horse owners. These policies are very inexpensive, and can provide coverage and peace of mind. Member benefits for United States Equestrian Federation include a basic horse owner's liability policy, and the cost of a membership is typically less than the cost of buying the policy separately.

- See more at: http://cs.thehorse.com/blogs/horses-and-the-law/archive/2013/12/02/why-individual-horse-owners-need-liability-insurance.aspx#sthash.WZQ326ac.dpuf

Guidelines to Follow During Equine Emergencies

Although we don't like to think about it, it's important to have a game plan when an equine emergency occurs. Thanks to our friends at AAEP and Bayer Healthcare Animal Health we have for you, 'Guidelines to follow during equine emergencies.'

A Bayer Animal Health Brochure

Revised February 2011  

If you own horses long enough, sooner or later you are likely to confront a medical emergency. There are several behavioral traits that make horses especially accident-prone: one is their instinctive flight-or-fight response; another is their dominance hierarchy -- the need to establish the pecking order within a herd; and a third is their natural curiosity. Such behaviors account for many of the cuts, bruises, and abrasions that horses suffer. In fact, lacerations are probably the most common emergency that horse owners must contend with. There are other types of emergencies as well, such as colic, foaling difficulties, acute lameness, seizures, and illness. As a horse owner, you must know how to recognize serious problems and respond promptly, taking appropriate action while awaiting the arrival of your veterinarian.

RECOGNIZING SIGNS OF DISTRESS

When a horse is cut or bleeding, it's obvious that there is a problem. But in cases of colic, illness, or a more subtle injury, it may not be as apparent. That's why it's important to know your horse's normal vital signs, including temperature, pulse and respiration (TPR), as well as its normal behavior patterns. You must be a good observer so that you readily recognize signs of ill health.

WHAT'S NORMAL?

There will be variations in individual temperature, pulse and respiration values. Take several baseline measurements when the horse is healthy, rested, and relaxed. Write them down and keep them within easy reach, perhaps with your first aid kit, so you have them to compare to in case of an emergency. Normal ranges for adult horses are:

Pulse rate: 30 to 42 beats per minute.
Respiratory rate: 12 to 20 breaths per minute.
Rectal temperature: 99.5' to 101.5' F. If the horse's temperature exceeds 102.5' F., contact your veterinarian immediately. Temperatures of over 103' F indicate a serious disorder.
Capillary refill time (time it takes for color to return to gum tissue adjacent to teeth after pressing and releasing with your thumb): 2 seconds.
Other observations you should note:

Skin pliability is tested by pinching or folding a flap of neck skin and releasing. It should immediately snap back into place. Failure to do so is evidence of dehydration.
Color of the mucous membranes of gums, nostrils, conjunctiva (inner eye tissue), and inner lips of vulva should be pink. Bright red, pale pink to white, or bluish-purple coloring may indicate problems.
Color, consistency, and volume of feces and urine should be typical of that individual's usual excretions. Straining or failure to excrete should be noted.
Signs of distress, anxiety or discomfort.
Lethargy, depression or a horse that's "off-feed."
Presence or absence of gut sounds.
Evidence of lameness such as head-bobbing, reluctance to move, odd stance, pain, unwillingness to rise.
Bleeding, swelling, evidence of pain.
Seizures, paralysis, or "tying up" (form of muscle cramps that ranges in severity from mild stiffness to life-threatening illness).
ACTION PLAN

No matter what emergency you may face in the future, mentally rehearse what steps you will take to avoid letting panic take control. Here are some guidelines to help you prepare:

1. Keep your veterinarian's number by each phone, including how the practitioner can be reached after-hours. If you have a speed dial system, key it in, but also keep the number posted.

2. Consult with your regular veterinarian regarding back-up or referring veterinarian's number in case you cannot reach your regular veterinarian quickly enough.

3. Know in advance the most direct route to an equine surgery center in case you need to transport the horse.

4. Post the names and phone numbers of nearby friends and neighbors who can assist you in an emergency while you wait for the veterinarian.

5. Prepare a first aid kit and store it in a clean, dry, readily accessible place. Make sure that family members and other barn users know where the kit is.

6. Also keep a first aid kit in your horse trailer or towing vehicle, and a pared-down version to carry on the trail.

FIRST AID KITS

First aid kits can be simple or elaborate, but there are some essential items. Here is a short list to get yours started. (*Material that should be sterile.

*Cotton roll
*Contact bandage
*Cling wrap
*Gauze pads, assorted sizes
*Gauze wrap
Adhesive wrap and adhesive tape
Leg wraps
Sharp scissors
Hemostats
Steel cup or container
Rectal thermometer with string and clip attached
Surgical scrub and antiseptic solution
Latex gloves
Flashlight and spare batteries
Permanent marker pen
Pliers (to pull nails)
6" diameter PVC tubing cut in half the long way (like a gutter) into lengths of 1-1 /2 to 2 feet (for emergency splinting)
EMERGENCY WOUND CARE

The sight of blood may unnerve you, but maintaining your presence of mind can save your horse's life. The initial steps you take to treat a wound can prevent further damage and speed healing. How you proceed will depend on your individual circumstances, and you must exercise good judgment. The following should be viewed as guidelines:

Catch and calm the horse to prevent further injury. Move the horse to a stall or other familiar surroundings if this is possible without causing distress or further injury to the horse. Providing hay or grain can also be a good distraction.
Get help before attempting to treat or evaluate a wound. It can be difficult and very dangerous to try to inspect or clean the wound without someone to hold the horse. You cannot help your horse if you are seriously injured yourself.
Evaluate the location, depth, and severity of the wound. Call your veterinarian for a recommendation anytime you feel your horse is in need of emergency care. Here are some examples of situations where your veterinarian should be called:

-There appears to be excessive bleeding.
-The entire skin thickness has been penetrated.
-The wound occurs near or over a joint.
-Any structures underlying the skin are visible.
-A puncture has occurred.
-A severe wound has occurred in the lower leg at or below knee or hock level.
-The wound is severely contaminated.
-Consult with your veterinarian regarding a recommendation before you attempt to clean the wound or remove debris or penetrating objects, as you may precipitate uncontrollable bleeding or do further damage to the wound. Large objects should be stabilized to avoid damaging movement if possible. -Don't put anything on the wound except a compress or cold water.
-Stop the bleeding by covering the wound with a sterile, absorbent pad (not cotton), applying firm, steady, even pressure to the wound.
-Do not medicate or tranquilize the horse unless specifically directed by your veterinarian. If the horse has suffered severe blood loss or shock, the administration of certain drugs can be life-threatening.
-If the eye is injured, do not attempt to treat. Await your veterinarian.
-If a horse steps on a nail or other sharp object and it remains embedded in the hoof, first clean the hoof. Consult with your veterinarian regarding a recommendation before you remove the nail. If your veterinarian advises, carefully remove the nail to prevent the horse from stepping on it and driving it deeper into the hoof cavity. As you remove it, be sure to mark the exact point and depth of entry with tape and/or a marker so the veterinarian can assess the extent of damage. Apply antiseptic to the wound, and wrap to prevent additional contamination.

All horses being treated for lacerations or puncture wounds need to be current on their tetanus vaccine.

OTHER EMERGENCIES

There are far too many types of emergencies from heat stroke to hyperkalemic periodic paralysis, bone fractures to snake bites, foaling difficulties to colic -- to adequately cover them all in this brochure. However, regardless of the situation, it's important to remember these points:

1. Keep the horse as calm as possible. Your own calm behavior will help achieve this.

2. Move the animal to a safe area where it is unlikely to be injured should it go down.

3. Get someone to help you, and delegate responsibilities, such as calling the veterinarian, retrieving the first aid kit, holding the horse, etc.

4. Notify your veterinarian immediately. Be prepared to provide specific information about the horse's condition, as mentioned above, and other data that will help your practitioner assess the immediacy of the danger and instruct you in how to proceed.

5. Listen closely and follow your equine practitioner's instructions.

6. Do not administer drugs, especially tranquilizers or sedatives, unless specifically instructed to do so by the veterinarian.

SUMMARY

Many accidents can be prevented by taking the time to evaluate your horse's environment and removing potential hazards. Also, assess your management routines to make them safer. Mentally rehearse your emergency action plan. Preparation will help you stay calm in the event of a real emergency. Keep your veterinarian's phone number and your first aid kit handy. In an emergency, time is critical. Don't be concerned with overreacting or annoying your veterinarian. By acting quickly and promptly, you can minimize the consequences of an injury or illness. Your horse's health and well-being depend on it.