- ©Kate Light
Despite our best efforts, horses and accidents are, unfortunately, related subjects. When my daughter was learning to ride, she was told that she wouldn't be a real horseperson until she had fallen off a horse at least five times. (Needless to say, Dad wasn't the one who mentioned this to her.)
I've lost track of the number of times I've found myself in midair with no horse underneath me. In saner moments, I've wondered why I even bother to own horses. But own horses we do, in numbers large enough to make horse ownership a significant industry.
According to Sports Injuries, a book published in 1985, "[horseback] riding, motorcycling and automobile racing are the three most dangerous sports." Most of the time mishaps aren't very serious and hurt only our pride. But sometimes accidents cause serious injuries and these, of course, can incur large medical expenses and lead to lawsuits.
"Well," you might say, "that's what insurance is for." And I wouldn't disagree. But as the following cases illustrate, when it comes to insurance coverage it's best not to take protection for granted.
In Black and White
Insurance policies are contracts between an insurance company and the insured. The policy covers exactly what is written within this contract.
Case in point: Melvin had gone horseback riding while his son, Larry, went into town. When Larry returned, he saw his father's horse returning to the barn, riderless. Larry found his father lying in the mud, dead.
Melvin had an accidental death insurance policy for the benefit of his wife. An autopsy was performed and disclosed that he had suffered a coronary ischemia (deficiency in blood flow), which the doctor believed caused him to fall from his horse. The fall caused him to break four ribs and develop internal bleeding. The doctor testified that his heart beat for five to 10 minutes after his fall. Larry also testified that his father was riding a high-spirited former racehorse, who--he could tell from the tracks--had jumped sideways when Melvin fell.
The question was whether Melvin died due to chest trauma from the fall or from the coronary ischemia. The chest trauma would have been sufficient to cause his death. If Melvin could have survived the coronary ischemia, but not the chest trauma, then the insurance company has to pay his widow. If he would have died from the coronary ischemia, then the insurance company doesn't have to pay. Insurance companies are very specific about what is covered in their policies.
What's Not Covered?
Exclusions are an important part of an insurance policy. They work by saying that the insurance company covers everything in the policy except for what is listed in the exclusions.
Case in point: Cage was at a stable to transport and assist a riding student. While walking in the barn, he was hit in the back of the head by a hay bale tossed down from the loft by an employee of the stable. At the time of the accident, the stable procured its insurance through an insurance agent, who had obtained the stable's policy through an insurance company. Cage sued the stable and was awarded $95,000 in damages. The stable assigned its claim with the insurance company for Cage to collect on the insurance. Unfortunately for Cage and the stable, there was a minor problem with the insurance. The stable had a farm owner's policy, a horse van policy and a worker's compensation policy, but the agent, during the year in question, had been unable to procure a stable liability policy. It's not clear from the decision whether the stable knew this. The farm owner's policy had a horse exclusion endorsement that read: "It is agreed that the insurance does not apply to bodily injury or property damage arising out of the maintenance, ownership, or use of horses."
This meant that the farm owner's policy did not cover any claims involving horses, so Cage could not collect from the insurance company for his claim. In effect, because of the exclusion, the stable had no liability insurance.
Risky Business
As a general rule, insurance companies presume that you are a business if you are involved in a moneymaking activity. Most homeowner's policies will not cover a business activity. Unless a liability policy specifically includes business activities, any business activities will be excluded from the insurance policy.
Case in point: Dolosich responded to an advertisement in a local paper to rent a horse at a local stable. When she arrived at the property, she saw a sign advertising the stable. Dolosich met with Rosborough, who informed Dolosich that she ran the stable, which was owned by the Steczes.
