The following questions are designed to identify the details of your equine business concept, permitting us to most efficiently identify the legal and practical steps necessary for formation, day to day management, and risk management.
- Name of Equine Business Owners: (List all). If you operate as a separate business entity (i.e. Limited Liability Company or S or C Corporation), list the name of your business as it appears on your Articles of Operation or Incorporation!
- Address, Phone, Fax and Email addresses for all owners:
- Address (including county) where equine business is to be located:
- Land is ____ Developed _____ Undeveloped
- Have you cleared any zoning or other land development issues?
- Existing Buildings include:
- Planned new buildings will include:
- Will property be developed as an equine-specific community residential development and if so, do you want restrictive covenants on the equine activities (i.e. covenants that attach to the land regarding equine use of the property)?
- Is land for equine business owned by a separate entity or parties and if so, will you require a lease-back agreement between equine business and property owner? (Example: Land owned by husband and wife but used by Equine Business LLC, also owned by husband and wife).
- Have you advised your equine liability carrier of all of the above intended activities or of your plans to add activities to ensure they are fully covered under your Equine Commercial General Liability Policy?
- Have you priced out the required insurance coverages you should consider carrying?
___ Equine Commercial General Liability (CGL) (not covered by your homeowners if you are operating as a business; ie receiving value for your services through cash or barter).
___ Care, Custody and Control (separate from CGL)
___ Premises Liability (separate from CGL)
___ Fire and Casualty (separate from CGL)
- Horse breeds or disciplines you are wanting to attract?
- Which of the following services will you provide? Estimated charges for each?
- Pasture board – and when supplemental hay and feed will be given
- Stall board with daily turnout; stall cleaning services
- Dry lot board; food water and cleaning services
- Exercise and grooming – details and costs
- Arena usage – for boarders only or available to trainers and clinicians?
- How will this interfere with your boarders usage and limitations?
- What insurance requirements will you demand from independent contractors and clinicians?
- What special arena rules will be required
- Can boarders use indoor arenas for turnout in winter or inclement weather?
- Special feeds, supplements and medical care administration costs
- Winter blanketing, heated buckets, summer fans and costs
- Trail riding (owner and horses only) or (public using Stable horses?)
- Training: Stable trainer or independent contractor and costs
- Will trainer by your employee or an independent contractor?
- Will you allow various independent contractors to teach on your premises
- Lessons: Stable instructor or independent contractor and costs
- Competitions on site and off site
- Transportation services: Medical emergencies, competitions, other & costs
- Summer day camps for children
- Girl / Boy Scout clinics
- Metropolitan Community College classes – equine
- Stable parties? Details and costs.
- Hay rides? Horse or tractor drawn, details and costs.
- Breeding Services. Will you provide short term mare care or long term mare care with foaling services?
- On site or AI?
- Who will be handling the AI (collection or insemination or both?)
- What are the AI terms and conditions?
- What are the Live Foal Guarantee conditions?
- Will you be standing studs owned by others?
- Other? ___________________________________________________
- What is your short and long term vision for the business on a 1 year, 5 year, 10 year and 20 year plan?
- Do you envision using your horses or leased horses in the lesson programs?
- Will you be willing to lease client’s horses for lessons? How much per lesson? How do you envision keeping accurate usage and accounting records? Who will insure the horse (ie CGL, Major Medical and Mortality). What if a client’s horse is injured in a lesson? What if a student is injured on a client’s horse during a lesson?
- What farm equipment will be owned? Purchase or Lease?
- What Insurance coverages do you need?
- Landowners Liability Protection or Umbrella Coverage
- Vehicle and/or Farm Equipment
- Fire and Casualty
- Care Custody and Control
- Equine Commercial General Liability
- Equine Mortality; Major Medical on horses you ow
- Equine mortality, major medical on horses you lease
- What forms do you envision requiring based on the activities you have listed above?
- Will Stable activities be limited to state of Stable’s location or multiple states? Is there a need for a multi-state waiver compliant with various states EALA statutes?
- Will you be allowing the premises to be used by independent contractors (ie to provide training or lessons) and if so, what are the terms and conditions related to their use of those premises? What are you charging them for same? How are records kept and who is responsible for keeping those records? Is the trainer/ instructor going to be required to carry separate liability insurance naming you as an additional insured or are you carrying the coverage?
- List all other information relevant to your business plan. Attach a copy of your business plan (if available).
© Denise E. Farris, Esq. (January 25 2022) This article may not be reprinted or reproduced in any manner without the consent of the author. Contact: Denise Farris, Farris Legal Services LLC. Email: [email protected]. Telephone: (913) 220-6203.
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