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Discussion on Care, Custody & Control Insurance
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Posted on Monday, Sep 4, 2000 - 2:09 pm:
I'm in the process of reorganizing my boarding operation, closing down for a few months for repairs and then (probably) taking in boarders again.
My operation is small; 6 boarders and 3 horses of my own. The horses are pleasure horses, old-timers etc. and emotional value is more than monetary value. The best of them would not sell for more than $5000.
Up til now I have had a general liability policy through Markel for a commercial boarding stable. The annual premium for $1 million coverage is about $1800. I do not have Care Custody & Control insurance because I felt I personally could cover the loss of any horse perceived to be my fault. Now, I'm not so sure and think perhaps there are extenuating circumstances beyond the loss of a horse that this part of the insurance would cover. Additional premium from last quote was another $400.
The reason I am posting the question here is because my agent is relatively unfamiliar with any type of horse business, the risks, etc. and the policy from Markel is a general commercial liability policy non-specific to horses. I know what I'm NOT covered for but it is a bit murky to define exactly what circumstances are covered. If anyone from the horse insurance industry is reading this I'd like to request that commercial HORSE liability policies be written. The application for the insurance is very specific as to what the operation will include (lessons, trail rides, etc.) but then the policy itself does not reflect that information.
So, my bottom line question is...Do I need CCC insurance for a bunch of low-priced equines (ins. has a cap per incident based on horse value) or is this something I can basically self-insure based on actual value of the horses under my care. If these equines cause damage by getting loose or injuring someone (under the "control" portion) is this covered under the general liability or do I need CCC to complete my coverage?
Thanks in advance for the advice or recommendation.
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Red |
Posted on Tuesday, Sep 5, 2000 - 6:12 pm:
Lois-
I recently went through a similar situation, A private barn with 11 horses that belong to us an 2 horses that are boarded. I am not really a boarding facility but took in these two as a favor. I carry a farm policy for 2-5 horses other than ours, which I added when these two arrived. I have a liability release that must be signed, and one of the boarded horses has mortality insurance, the other one is too old for this insurance and only qualifies for insurance pertaining to acts of god. I also, became concerned, and questioned by agent about the CCC insurance. The answer back to me was - even though mortality is carried, the owner could also claim under CCC insurance. Which meant to me that the owner could otherwise sue me. In other words depending on the severity of the problem this could be double dipped in a claim.
SO-guess what? I now carry CCC insurance.
You do have to be careful because you can go insurance broke trying to cover all bases.
The one good thing about the CCC insurance is that for some reason if you had to trailer any horse some where, and the owner did not have any insurance on their horse, it is covered while you are trailering it - case in point the older horse at our facility, that I am guessing does not have insurance would be covered if we had to trailer it somewhere.
One other thing, my older horse (24), is not covered by an equine policy for acts of god, etc, but on my owners policy as a possession.
Well, hope all works out well for you.
Red
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