I
spent two days in a student's seat this fall learning from expert
lawyers at Finger Lakes Horse Farm Business School organized by Jim
Ochterski of Ontario County Cornell University Cooperative
Extension about horse business contracts, business liability and
insurance coverage. I have to admit, the subject matter is
grim and leaves me searching for an anti-depressant at the end of
each session. There are so many dark clouds to worry about when
you'd prefer to be making money training and selling horses or
giving riding instruction.
But,
the inescapable reality is the threesome of contracts, liability
and insurance are the dark and mysterious subject areas of all
business, not just the horse business. While business owners prefer
to focus on increasing sales and reducing expenses, there is no
denying that business conflicts arise and demand your
attention.
Ignorance
of business law is a lot like riding a bucking horse without a
helmet. It's only a matter of time before you find
yourself unseated and wishing you'd taken the time to protect
yourself.
Here's
what I got from listening to the speakers:
Contracts
An
agreement in writing signed
by both parties is always a good start. No one can run from
their signature. Know your rights and your customer's rights;
don't guess or assume. While contracts are seldom bullet proof, a
knowledgeable local attorney's review of your standard contracts is
an investment you won't regret.
Business
Liability
No
matter how careful you are,
sooner or later someone is going to blame you for something that
happened to them, even if caused by their own bad judgment.
Accidents like an injury to their horse under your care, custody
and control or an injury to them like a horse standing on their
foot or worse, falling off. Each state treats personal injury
differently. Know your state's laws or lack of them for equine
liability.
Insurance
Coverage
Insurance
is a source of a legal defense and money for liability
claims. Not all insurance protects against all potential
liabilities. It's up to you to know what protection you've bought
and what the limits are. An agent who knows your business and the
correct match for coverage is the place to start.Your application
of risk management is your best line of defense against your
increased premiums due to claims.
There
is no denying work
with horses and people has more risks than you can list on a legal
pad. Understanding contracts and liability is key for good business
operations.
But
waking up and going to bed worrying about everything that can go
wrong is no fun.
Three
things you can do in the next thirty days to eliminate worry about
the dark clouds of business:
- Review
your standard business contracts with your horse business
attorney.
- Examine
your insurance policy coverage with a knowledgeable horse farm
agent.
- Be
satisfied you've delegated the job of Chronic Worrier to the
lawyers and insurance underwriters and return your focus on the
sunnier side of business.
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