This blog is about my life, a 31 yr old filly; working in the city, balancing her career, passion for horses, dogs, and the life they deserve. Following my dreams, and getting there takes a lot of patience and a sense of humour. This is my take on life, and the amazing and stupid things in it.

Wednesday, April 10, 2013

Insurance - Trailer Renting and Trailering for Profit

 
Are we covered?


Yes, that dirty I word again.  In case you have not realized this yet, I work in the Insurance Industry.  I may be a little more paranoid than most when it comes to covering your ass, but it is with good reason.  I see just how much one can loose from a simple stupid decision they might make, thinking it was "no big deal" on a daily basis.

 Recently there has been a lot of talk between friends, and on the online horse forum communities about trailering for people for money, and questions on renting out your trailer for money.  Let me just tell you right now, that unless you are a commercial entity with proper commercial insurance coverage, both of these things are just bad ideas.


  There are a few basic rules of insurance.  The first is; you can't insure anything you don't own.  This means, if you rent a trailer from your friend, coach, some guy off the internet, you can not insure it.  The owner of the trailer needs to carry the insurance since they own the trailer.  Fair enough you think, they have the trailer insured.  The problem arises with the second basic rule of insurance.  The minute monetary compensation passes hands in an agreement, you become a commercial entity and require specialized commercial insurance.

 So, your friend/coach/guy off the internet then becomes a commercial entity and their personal automobile and trailer policy does not cover the trailer.  Say you rent the trailer and there is an accident, paralyzing someone else on the road and killing your horse, destroying the horse trailer.  Not only is there no coverage for the trailer, there is no coverage for the horse, or the person who is permanently disabled.  This is a bad situation for both the renter and the rentee. 

 You can of course get around this if you rent a trailer from someone who is commercially licensed and insured.  Conversely, you can ask a friend to loan you their trailer at no cost, and then you are covered under your own policy for liability so long as you own the towing vehicle.  Coverage would fall under your own auto insurance policy.

 Much like renting out or renting horse trailers, you can not accept payment unless it is shared cost of gas for hauling someone else's horse unless you have a commercial auto policy.  Once you charge for trailering, you are becoming a commercial entity and your personal auto and trailer policy will no longer cover you in the event of a loss.  If you want to make money hauling horses, don't be cheap and get a proper commercial auto insurance policy.  Or, be a good friend, and just split the cost of gas like my friends and I do.  If my friend drives, I always bring lunch.

 Don't take my word for it, if you have any questions about your coverage, and what may or may not be covered, call your Insurance Broker.  It is better to pay more and be properly covered, then to go without and pay for the rest of your life.

 Cover your butt!




{ This post is day 9, letter I of the Blogging from A to Z Challenge.  
Posts are theme based on the corresponding alphabet letter, starting with A on April 1st.  
Sundays are skipped. 
 The last blog post should finish the challenge on the 30th of April 2013. 
 If you would like to learn more about the A to Z Challenge, please visit this site.  } 


7 comments:

  1. Thanks for the lesson. I don't trailer horses but I think that it can be applied to other things...

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  2. Preach it! I used to let people borrow my trailer in exchange for fixing it/cleaning it. I got a new set of tires out of the deal :)

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  3. I'm in the insurance business too. When I saw the title to your post, I went all ranty inside... then I read it! Spot on perfect! Interesting how alot of folks don't get it or worse, try to hide it from the insurance company. Its fine as long as nothing happens.... thanks for writing it. I believe I will be reposting it...

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    Replies
    1. Thanks for the support! Us Insurance folk need to stick together ;)

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