With even frivolous lawsuits costing significant funds, you need to be sure you've got all your business needs well covered. We talked with Kate Masterton, a horsewoman and attorney, about why a seemingly backyard horse business should be concerned.
Do you need a stable license as soon as you keep even one horse who is not yours?
Stable licensure, as a general matter, is within the purview of states to regulate. Because in the United States horsemeat is not considered a consumer food product, there is no federal standard of licensure. So, it's dedicated to state control. Not all states require licenses, and some states offer licenses as an optional credentialing device. It is important that you learn what the law of stable licensure is in your locality--I say locality because zoning laws, which are local-county, parishes-also can require licensing as a part of their zoning regulations. So it is important that you check on state stable licensing requirements and those in your particular locality.
The other thing you want to check on is whether your state law considers you to be "in trade," because you may need a trader's license. In Maryland, stable licensing is optional, but stables that are licensed use it for credentialing to distinguish themselves as leaders within the equine industry.
What is the minimum you need to protect yourself if you board another person's horse?
First, you should be adequately insured. That can encompass a number of issues. Sometimes, homeowners' policies will cover injuries from horses and sometimes even from a horse not the homeowner's. It's important to read every insurance policy carefully to learn what is or is not covered. I also generally advise everybody--not just horse owners--as a means of asset protection to obtain an umbrella policy, which is intended to cover much of what would not be covered by your run-of-the-mill homeowner's policy.
Homeowners may be able to add a rider-no pun intended-to a policy to provide coverage for equine operations, or they may actually have to purchase a farm-liability policy. There is tremendous variation among the states, because there is tremendous variation in insurance laws and in the way horses are treated under states' laws. If in your state they're classified for all purposes as livestock, then it's unlikely that homeowners' will pay.
If you're boarding another horse, you should have a written boarding agreement, and ideally you want that agreement to cover every situation that is foreseeable, including failure to pay board.
It should include what medical care and documentation will be required before the horse may enter the property, such as vaccinations and proof of same. It should require contain a comprehensive release of liability. It should authorize the property owner to have full discretion when to call a vet, farrier, or other health-care professional, and provide that the horse owner agrees to pay whatever costs arise from the property owner's exercise of that discretion.
