An insurance policy is a contract between you and the insurance company. With some policies, such as mortality insurance, the company agrees to pay you a sum of money if your horse dies or is stolen.

With other policies, such as liability insurance, the company will provide you legal counsel and pay certain demand or judgments against you ( up to a specific dollar amount) arising from personal injury or property damage for which some one claims you are legally responsible.

Liability insurance generally covers unintentional situations in which someone is injured either on your property, from an act that occurs around your horse - such as a bite, kick or fall - or, in some cases, from an injury that arises under your supervision, such as during a riding lesson.

Some examples of liability insurance are the personal liability on your homeowner's or renter's insurance, commercial general equine liability, professional liability, individual horse owner's liability, and event liability.
It is important to have proper liability insurance because of the unpredictable nature of horses, and the fact we live in a society where lawsuits are common.

It takes just one personal injury lawsuit to drain your savings and end your horse activities for good.