JANUARY 2011 THE RIDER /15 Insurance 101 – OEF Member Insurance Benefits


The following article has been provided by Intercity Insurance Services, the official insurance provider for the Ontario Equestrian Federation.


After many successful years of providing service to the equine community across Cana- da, several of our Provincial Equine Association partners (including the OEF) have asked us to draft an article to clarify the insurance program and to try and dispel some of the myths that pop up from time to time. We hope that this information will help readers understand the terrific value of this member benefit and ask only that if you have thoughts/comments/ques- tions about what is written here, let us know. Our job as insur- ance brokers is to serve you and our clear objective is to exceed your expectations – every time. We need and welcome all feed- back.


Chapter 1: $5,000,000 Person- al Liability Insurance


This is one of the two insurance policies that is auto- matically provided to the mem- ber when the Provincial Equine Association (OEF) accepts the membership fees. As soon as the applicant is considered to be “in good standing”, the personal liability insurance as provided is in full force.


There is no deductible for Bodi- ly Injury claims).


c) The use of the horse is not covered. This is a personal lia- bility insurance coverage. Com- mercial use of the horse is not covered. Riding instruction is a commercial activity and is not covered. For your information - showing, boarding, incidental breeding, leasing between two individuals and recreational use are all considered to be personal uses and are covered by the insurance policy for individual members.


d) The member charged a fee for the service of transporting someone else’s horse and by definition, entered into a com- mercial transport transaction – which is not covered.


e) There is “other” insurance that could or should respond. Almost every insurance policy (except life insurance) has a clause within the wording that addresses the possibility that the insured has/may have “other insurance”. “Other Insurance” in this program means that if the member


could collect from more than one insurer if they have more than one insurance policy that covers the same loss.


So, that is it for the included insurance…an excel- lent program, at very low cost, that addresses the reality of being involved with horses.


Chapter 3: Optional Insur- ance Program


A few years ago, at the request of our customers, we expanded the insurance pro- grams we offer to our Equine Association partners and their membership. The following is a summary of those Optional cov- erage that require the member to pay an additional fee.


Enhanced Accident, Death and Dismemberment (AD&D) Coverage


The period of coverage is directly tied to the membership - when the membership expires, so does the insurance. This is liability insurance. By defini- tion, this means that if someone else (a third party) alleges that the member is legally responsi- ble for Bodily Injury or Property Damage caused to them by an owned or leased horse of the member the policy will respond, defend the member as necessary and pay the damages if found to be legally liable.


In addition, the policy provides coverage for the care, custody and control of non- owned horses. For example: if the member was transporting another person’s horse (in a non-commercial situation) and an accident occurred where the member was held to be legally liable for the transported horse’s injury (or death) then this policy would respond. This is a unique coverage that we provide to rec- ognize that almost invariably, the member who owns a horse trailer will (at some point) trans- port a horse that does not belong to them. Regardless of the type of liability claim made, the response of the insurer will vary by individual circumstance and it will come as no


surprise that not every claim will be paid. The reasons for possible denial of coverage are many.


A few examples:


a) The third party makes no for- mal allegation of liability. Insur- ance is not a “voluntary pay- ment because the member feels guilty” program. For a liability policy insurer to do “anything”, then “someone” has to actually go to the trouble of alleging that the insured (member) is respon- sible and then prove their loss. This is true of all liability insur- ance.


b) The value of property dam- age caused by the horse is under the deductible of $1,000. (yes, there is a deductible – but only for Property Damage claims.


has another insurance policy to put the claim through, then that “other” policy is going to be involved and may have to pay all or a part of the claim. This “other insurance” clause is a very common risk deferral strat- egy that insuring companies of all stripes use. This does not mean that the Equine Associa- tion policy will not cover the member or the loss. If the mem- ber does not have any other insurance that could or should respond to the claim, then the Equine Association will respond.


Chapter 2: Accident, Death and Dismemberment (“AD&D”)


This is the second insur- ance policy that is automatically provided to the member in good standing of the equine associa- tion. This AD&D policy has a “Principal Sum” limit of $ 30,000. The “Principal Sum” is the amount which is used to determine how much the mem- ber will receive if they sustain a “scheduled” (listed) injury which resulted from an equine accident. The amount paid will be a multiple of $30,000 or a portion of $30,000. The “sched- ule” (list) of injuries is what determines how much will be paid. This is a catastrophic and permanent injury policy. Para- plegia, quadriplegia, loss of sight, loss of a limb, loss of hearing are all examples of the types of injuries that are “sched- uled” and; therefore, covered. Death from an equine accident is also covered.


What this AD&D policy does NOT COVER is any:


1) Loss of income


2) Rehab cost for injuries that are not scheduled on the policy 3) Fractures (or other non- per- manent injuries) 4) Dental work


5) Members who are over the age of 90 years old


The policy is in force 24 hours a day, 7 days a week and covers the member anywhere in the world. The policy will pay regardless of any other insur- ance policy that may be in place for the member. These types of insurance (AD&D) “stack” so conceivably the injured person


If the member chooses, they can opt to increase the “Principal Sum” of coverage provided to them by an addi- tional $50,000. When this optional coverage is purchased, then there is some limited cov- erage provided for Fracture and Dental injuries. The fracture benefit is a one time payment and the amount is determined by which bone(s) is/are involved. The highest payment is for a fractured skull and is $750.00. Other fractured bones pay less. The maximum dental benefit is $1,000. When we poll members across the country, they tell us that they are motivated to pur- chase this additional coverage for the increased coverage obtained for catastrophic injuries and dental and not nec- essarily for the relatively small benefits provided for a “broken arm”. There is no coverage under this optional enhancement for loss of income or rehab costs for injuries not scheduled (list- ed). This policy is not available to members over the age of 70


years.


Optional Travel Coverage If the member chooses, they can obtain a travel/medical policy through the association that will cover the member for out of Province/Country emer- gency medical expenses that might be incurred. This policy covers any number of trips the member may take throughout the year - anywhere in the world - for the first 90 days of any one trip. This policy recognizes that the member may be involved in horse related activities when they travel and if they have an accident that requires medical attention, the coverage will be there. There are exclusions and as one would expect, conditions of coverage are impacted by some pre-existing medical con- ditions. This coverage is not available to members over the age of 70 years.


“Members Named Perils” Horse Insurance


If the member chooses and pays for this optional insur- ance coverage, they will have obtained horse mortality (life) insurance for any horse they own if the horse dies as a result of one of the insured perils. The perils (causes of death) insured are Fire, Lightning and Trans- port.


insured for ALL risks of loss…anywhere in North Amer- ica


Definitions and Other Quick Facts:


1) Who is an insured: Under the MEMBER insurance program, it will come as no surprise that only the MEMBER is the insured - not the member’s friend, not the member’s coach, not the member’s boarding place owner…only the MEM- BER.


2) It does not matter how many horses you own to have cover- age under the Personal Liability policy that is included in your membership and it does not matter if you board the horses away from your home.


The maximum the policy will pay is $4,000 for any one loss. The territory for coverage to respond is anywhere in North America. The maximum benefit for any one term- for any one member is $4,000. There is no deductible. This policy does not cover vet expenses or death aris- ing from any other cause.


Optional Tack Insurance This is the latest addition to our Provincial Equine Asso- ciation insurance program. If you choose this option, then up to $2,500 of your tack will be


Phone: (519) 268-2050 email: grantontrailers@execulink.com www.grantontrailers.com


3) The Personal Liability policy will not provide coverage for you if you are sued because you let someone else ride your horse and they fall off and get injured unless the person riding the horse is also a member of an equine association or is a person who earns their living in whole or in part in the horse industry. Your association set this rule in place years ago to encourage membership. The solution is simple…get people to join the equine association before you let them ride your horse… then you are covered.


4) If someone else is holding your horse and the horse kicks them/bites them/stomps on them etc. and they decide to hold you legally liable for their injury, then you are covered.


5) The AD&D policy is for the member… not the member’s horse… if you wish to insure your horse against injury or death, we can help… but under a separate policy.


6) If the member is a


junior/minor and owns the horse and a lawsuit is launched against the member because the horse did “something” to “someone” it is almost certain that the junior’s parent/guardian is going to be named as a co- defendant. In this circumstance, the Equine Association policy will protect the junior/minor and the parent/guardian – automati- cally.


7) If the member allows their coach to use their horse in a rid- ing instruction environment (perhaps for a reduction in board etc.) then BEWARE of the legal implications. The Equine Association policy will NOT protect the member if the horse causes bodily injury or property damage while being used “commercially”. There is a simple solution. The member should request that the coach/boarding place owner (user of the horse) provide a certificate of insurance to con- firm that they have Commercial General Liability insurance in place – we recommend a limit of no less than $2,000,000 – AND – have the coach or board- ing place insurance provider add the name of the horse owner/member to the Commer- cial General Liability insurance policy as Additional Insured. This simple endorsement typi- cally has no cost associated with it and will potentially protect the member.


The above information is a summary only and should not be construed to be a complete detail of coverage or exclusions that may apply. We urge all members to contact our trained insurance professionals – toll free at 1-888-394-3330 with any and all inquiries about the insur- ance programs that are provided through your Provincial Equine Association.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56