Protecting Your Prized Possessions
The below article was published in the April 2023 issue of the Hunt Country Quarterly Magazine.
“Horse people are good people.” I heard that often growing up with horses. It was reassuring and gave us the sense that folks in the equestrian community could handle matters informally. Today, the horse world is dramatically different. There is far more potential liability and money at stake. Recent studies at NC State and the University of South Carolina indicate that the equine sector of the Carolinas’ economy generates over 47,000 jobs and has an annual economic impact of over $4,000,000,000. The horse world has grown up and equestrians need to handle their business in ways that reflect the new reality.
Let’s take a look at a few common legal issues that affect the equestrian community.
Asset Protection. For most people this is their number one priority. By forming a limited liability company or corporation, you can protect your business and your personal assets from creditors and lawsuits, and you may also obtain certain tax advantages.
Liability Protection. It is important to create layers of protection from potential claims. The first and easiest action is to properly post state-approved warning signs on your property. Be aware; there are exceptions to warning sign liability protections so more actions are necessary. Using up-to-date boarding agreements, releases, waivers and business contracts agreements add a greater level of protection. If properly prepared, these documents can protect you from liability exposure in most cases. However, because warning signs and written contracts may not provide complete protection, you need to add a layer of good liability insurance. The right insurance will pay for itself many times over.
Buying, selling or leasing a horse? Get it in writing! Given the significant price of horses in every discipline and at virtually every level, the traditional “handshake” deal is a bad idea. You can avoid expensive and messy disputes, and save money by using thorough written purchase and lease agreements.
Participation in our sport carries a certain amount of safety risks, however, you can significantly reduce your legal and financial risks by working with an experienced equine law attorney. By taking the steps in this article, “good horse people” can keep the equestrian life thriving in the Carolinas for years to come.