Professional farriers demonstrate their work is a legitimate business by incorporating and following tax laws. As the business grows, farriers should take time to work on the business and not just in the business. They must protect their hard-earned income. This includes obtaining protective insurance and understanding exactly what is covered.

Do you have business liability insurance? We recommend all farriers carry some liability protection. It is usually very inexpensive. You should obtain a certificate of insurance from your provider as some of the more expensive barns will require it to work there. You will also need to provide them with information for filling out 1099 forms that are now required. The nature of business liability insurance is different and specific to what you do and the risks you are exposed to in your regular business operations. Work that is done outside those operations such as training, transporting or rendering first aid is not covered.

Care custody and control insurance is required when you remove a horse from someone’s property and transport it or train it or do anything to it other than shoeing. Business liability insurance will not cover you. For example, policies may specify that if the animal is removed from the owner’s property or not under their direct control, it will not be covered. This kind of coverage is much more expensive than business liability insurance and should be obtained by those who run boarding and training stables, in addition to farrier service.

Equine accident and life insurance is obtained when horses are very valuable and their loss would mean severe financial loss to the owner(s). The premium is usually based on a percentage of the horse’s value. Evidence to establish the horse’s value is needed. Athletic horses in competition have a higher value than pets. Anytime the farrier or vet works on an insured laminitic or foundered horse, the insurance company must be notified and give their permission.

There seems to be a growing trend for people in high risk jobs like ours to be denied coverage. It is frustrating to find out that a certain activity that we thought should be covered actually is not. Naturally, insurance companies are reluctant to pay off every claim without challenging it to be sure it is legitimate. Yet, we expect them to do what they agree to do when we pay the premiums.

You must keep accurate records of what you do each day to protect yourself from frivolous lawsuits. A simple record or day book is all that is necessary. I know of several cases where these records saved a farrier in a lawsuit. If you feel something isn’t right, or you feel you are exposing yourself to unnecessary risk, you must learn to say no and stop work. This is not easy to do since farriers are finishers – they “get ‘er done.” But, it is better to be safe than sorry.

More and more insurance companies are dropping out of the market and denying coverage, even to those of low risk and who have been customers for many years. Excessive government regulation and litigation has caused many companies to quit. What can you do to protect yourself and your accumulated assets? Running a business without insurance is risky business. Your exposure to predatory lawyers and greedy clients is magnified. It used to be that ill-mannered horses were the only dangerous animals that farriers had to worry about!

After purchasing insurance, your best protection is to be corporate and competent. Learn all you can and practice the highest standard of craftsmanship and character. Select carefully those you choose to do business with.