Protect your equine business: Understanding care, custody & control coverage

Courtesy Markel

In the equine industry, liability insurance is a crucial safeguard for businesses and individuals alike. One specific type of coverage that often goes overlooked is Care, Custody and Control coverage. This article will explain what CCC coverage entails, why it’s essential, and how it applies to scenarios involving horse trainers and boarding stable operations.

CCC Coverage Exclusion in Standard CGL Policies

Commercial General Liability (CGL) policies are a common form of insurance for many businesses. However, these standard policies typically exclude coverage for non-owned property under the care, custody and control of the insured. This exclusion means that without an endorsement to add CCC coverage, an injury to a client’s horse might not be covered under a standard CGL policy. Understanding this exclusion is crucial to avoid unexpected coverage gaps. CCC coverage is particularly relevant for those in the equine industry, where handling horses owned by others is a common practice. CCC coverage may help provide protection against potential liabilities and financial loss and legal expenses if a horse in your care is injured, killed or stolen.

**Real-Life Examples* Involving Horses**

Example 1: Horse Trainer Imagine Hannah, a dedicated horse trainer, who has been entrusted with a prized stallion named Thunder. One day, while training Thunder in the insured’s arena, a tractor backfires and spooks him. Thunder bolts, and in the chaos, he injures his leg. The injury requires immediate veterinary attention and extensive rehabilitation. The horse’s owner accuses Hannah of negligence, alleging she should have not allowed the tractor to be used during the training session. Because Thunder is considered non-owned property, a standard CGL policy might exclude the cost to defend her, and if liable, damages such as veterinary fees to treat the horse. Remember, defense costs can often exceed the actual indemnification because legal fees, expert witness costs and other litigation expenses can accumulate quickly, especially in complex cases.

Example 2: Boarding Stable Consider a boarding stable owned by Jesse, who cares for several horses owned by different clients. One evening, a severe storm caused a tree to fall, damaging the paddock fencing. During the night, one of the horses, Jack, heads for the hills through the broken fence and is injured. Even though Jesse was unaware of the storm damage, the owner sued. Fortunately, Jesse has CCC coverage, which may help provide the necessary protection against potential claims from Jack’s owner.

Q: How do I determine what limits of insurance I need for horses in my care?

A: When choosing a limit, consider how many horses are in your care at one time and if they are insured for mortality and what limits they currently hold. This is a good starting point to determine the limit per horse and total aggregate limit. You can also contact your Markel representative to help you determine the most adequate limits for your individual needs.

Q: I require all my boarders to carry mortality policies on their horses. Do I still need CCC coverage?

A: Yes. While requiring your boarders to have mortality coverage is an excellent practice, it does not prevent you from being sued should an accident occur. CCC coverage may not only pay out on your behalf should you be liable, but it also includes defense costs associated with CCC claims. Without CCC coverage, there may be no coverage to pay for your defense costs if you were sued.

Q: In addition to training non-owned horses, I also transport them to shows. If we are in a hauling accident and a horse is injured, is there coverage?

A: Yes, incidental transportation as part of a boarding, training, or breeding operation is included under the care, custody and control coverage form.

How to Obtain CCC Coverage

At Markel, CCC coverage can be added to an existing commercial equine liability or Farm Package policy. It is essential to work with an experienced insurance agent who understands the specific needs of the equine industry. Evaluating the amount of coverage needed based on the number and value of horses in your care is also crucial. This can help determine that you have adequate protection in place.

Markel is represented exclusively by insurance agents in the field who specialize within a specific horse discipline and/or breed. Horse owners and professionals can be assured that Markel’s specialists understand their wants and needs, because our specialists are horse people too.

Learn more by contacting Markel, the official equine insurance of APHA

markelhorseandfarm.com
800.446.7925 | horseinsurance@markel.com
Select a Markel horse insurance agent at markelwestern.com

About Markel

We are Markel, a leading global specialty insurer with a truly people-first approach. As the insurance operations within the Markel Group Inc. (NYSE: MKL), we operate the Markel Specialty, Markel International, and Markel Global Reinsurance divisions, as well as State National, our portfolio protection and program services operations, and Nephila, our insurance-linked securities operations. Our broad array of capabilities and expertise allow us to create intelligent solutions for the most complex risk management needs. However, it is our people—and the deep, valued relationships they develop with colleagues, brokers and clients—that differentiates us worldwide. For more information, visit markel.com.

*The examples provided are for illustrative purposes only and not indicative of future results.  Any claim submitted under an issued policy would be evaluated on its own merits according to the specific terms and conditions of that policy.  These examples do not guarantee coverage or similar outcomes for other events and claims. 

This content is provided for informational purposes only.