The odds are stacked against farriers.
You’re working under large, unpredictable animals. You use knives, hammers and flammable materials. And, you spend an obscene amount of time behind the wheel. With all of these hazards, as well as a host of others, you must protect yourself, your family and your business.
Simply put, it’s not a matter of if you will need insurance, it’s a matter of when.
As a hoof-care professional, you need to include insurance in your business plan, as well as the cost of insurance in the prices you charge.
While proper coverage is important, the costs can be daunting to someone just starting a farrier practice. The consensus of successful veteran farriers is that at the very least, you must have some sort of health coverage, as well as proper coverage on your vehicle. Liability coverage is next in terms of importance, followed by disability or income insurance. If you have dependents, life insurance is also a must.
To get started, sit down with a knowledgeable insurance agent and hash out what you need. If you have little or no experience with insurance, talk with family members, friends or other farriers you know about agents they work with.
It might be a plus if an agent already has worked with other farriers. Agencies that have a history of working with farms and ranches might be familiar with what you do for a living. Either way, it’s important to have forthright discussions with agents so they can best understand your protection needs.
Vehicle Insurance
Priority: High; legally required in most states.
Price range: Will vary greatly, depending on your state, type of vehicle you drive, driving record and other factors.
Among the biggest mistakes that farriers can make is carrying personal vehicle insurance rather than commercial. Many farriers, especially those starting in the profession, use the same vehicle for work that they do for personal transportation. Yet, if you are involved in a crash while using a vehicle for business, your insurance provider might not cover the loss.
“If you’re shoeing part-time and doing most of it near your home, you may find that your personal auto insurance will cover you,” says Webster, N.Y., farrier Esco Buff, who holds a Ph.D. in business administration. “Each insurance company is a little different. Some look at the number of miles you travel in a set period of time, while others look at the percentage of use that’s for business purposes vs. personal use.”
The best way to start is by sitting down face-to-face with an insurance agent and discussing your needs.
Here are some things to remember when shopping for vehicle insurance.
- Be sure you understand how commercial and non-commercial vehicles are defined by both the insurance company and the state you’ll be working in. You also must understand how your insurer defines personal vs. commercial use.
- If you use a farrier trailer, make sure your policy covers it. One advantage that trailers offer is that they can be unhooked when not in use, Buff says. This provides a clearer distinction between personal and business use.
- Make sure your insurance covers the cost of your vehicle’s contents, such as tools and supplies. Some insurance policies, Buff says, won’t cover fires outside of the “normal” causes, such as engine compartment and electrical fires. If you intend on using a forge and welding equipment, find out whether you will need a rider for fire insurance.
- If you intend to use a forge, check your state’s regulations on transporting propane cylinders for commercial use. You could be levied fines and penalties, as well as negatively affect your insurance coverage if you are not in compliance and involved in a crash.
Health Coverage
Priority: High; legally required by Affordable Care Act.
Price range: Will vary greatly, depending on your situation and where you live. The Kaiser Family Foundation reported that in 2013, the annual average costs of premiums for employer-sponsored health insurance were $5,884 for single coverage and $16,351 for family coverage. A 2014 report by eHealth Insurance Inc., which surveys individually purchased plans, reported the average cost was $3,252 a year ($271 a month) for single coverage and $8,004 a year ($667 a month) for family coverage.
Despite the persistent political debate surrounding the federal health care policy, it is critical that hoof-care professionals have health insurance.
“It’s crazy to do what we do for a living, to expose ourselves to the danger from doing it without health insurance,” says Jeff Ridley, immediate past president of the American Association of Professional Farriers.
Based on his experience in researching health insurance, the Leighton, Iowa, farrier urges his colleagues to leave no stone unturned before buying coverage.
“The big thing is that every state has its own regulations and restrictions,” he says. “So, it’s important to do your homework. But you have to take care of yourself and your family.”
Here are some avenues for obtaining coverage:
- Some multifarrier businesses offer health coverage, but these are rare. Even if a more experienced farrier agrees to take you on in an apprenticeship, it would be highly unusual to get health coverage in such a relationship (although you should be covered for workers’ compensation).
- Buy health-care coverage through another employer. This could be through a spouse’s job, or another job of your own. A number of farriers have reported doing this while performing hoof care on a part-time basis as they get established.
- The Affordable Care Act allows adults younger than 26 to remain on their parents’ coverage.
- Another possibility is to look into health-care plans that you might qualify for through your state. All states have some sort of subsidized basic health-care plan. As a self-employed farrier, you could be eligible to enroll in the plan, which typically offers lower co-pays than most private plans. Benefits, eligibility requirements and payments will vary greatly from state to state.
- Ultimately, many farriers rely on private plans. Often, this is a fact of life for those who choose to be their own boss. It also means you will pay for your own benefits package.
- Ask an agent about higher-deductible plans, which are offered by most private insurers. The plans cost less up front, but you’ll pay most expenses yourself until you reach the amount specified in your particular plan. The key concept with these plans is that you will have coverage beyond that amount if you suffer a major injury.
Liability Coverage
Priority: Moderate to high; just below health and vehicle insurance.
Price range: $450 and up a year.
Liability coverage is a tricky issue. Many young farriers might believe they don’t need it, particularly because the majority of states have equine liability laws that are designed to protect them from a lawsuit. However, no farrier should rely on those laws.
“Nothing in those laws, in most states, is going to prevent a farrier from being sued if a horse is injured, or if a person or other property is damaged,” explains Lance Allen, director of the Equine Division in the Stilwell, Kan., office of Markel Insurance. “Most of these laws have a giant loophole that leaves a farrier exposed to acts or omissions that could be considered negligent. An astute attorney is going to claim the farrier was negligent if someone is injured.”
Under certain liability coverages, an insurance company will represent you and pay any damages up to the policy limits.
“The cost of this coverage is nominal compared to the cost of 2 hours with an attorney,” Allen says. “By the time you’ve talked with an attorney for 2 hours, you’ve paid for your policy.”
Don’t make the mistake of thinking that just because you’re working on backyard horses that you don’t need liability insurance.
“You don’t want to think that just because you’re working on inexpensive horses, you don’t need protection,” he says. “What if a 12-year-old girl is holding the horse and it takes off? She could have a million-dollar injury.”
Markel, based in Glen Allen, Va.; Farm Family Casualty Insurance Co. of Albany, N.Y.; Veracity Insurance Solutions of Pleasant Grove, Utah; and Ark International Group of Paynesville, Minn.; are among firms that offer specific farrier liability insurance
packages. Other insurance companies also may be able to put together specific packages for your needs.
Broad areas and terms of interest include:
- General liability. Includes cost of legal defense and paying damages with no out of pocket expenses.
- On and off premises. Protection against claims due to bodily injury or property damage caused by a farrier’s activities, regardless of where it occurred.
- Completed operations. Coverage for bodily injury or property damage caused by the work that the farrier has performed. For example, a shoe comes off, resulting in injuries to a horse or rider.
- Care, custody and control liability. Coverage for injury to a horse while it is in your care, custody and control.
- Equipment and supplies floater. Provides coverage for loss or damage to a farrier’s transportable inventory such as tools, shoes and supplies.
Disability Insurance
Priority: Moderate, but higher if you are providing all the income for your family.
Price range: The average private disability insurance premium is $2,200 a year. The average benefit is about $2,500 a month.
Mike Ehlert, a veteran farrier from Hartland, Wis., is a big believer in disability insurance. On two occasions Ehlert has been unable to shoe for extended periods of time after breaking a leg. He credits his overall insurance package with protecting him and his family from financial disaster.
Ironically enough, Ehlert was not working on horses at either time when he broke his leg. The first break occurred in 2001 during a boating accident. The second happened in 2008 when he suffered a bad fall on ice while getting ready for a day of hoof care.
“When I was laying there waiting for the ambulance, I wasn’t as stressed as I was 7 years before,” he recalls. “Just having the insurance and knowing how things worked made things much less stressful.”
Ehlert has two different disability policies. One started paying when he’d been out of work for 30 days. The other kicked in 60 days later.
Ehlert points out that working with an agent to put together an overall insurance package paid off for him. He had health insurance coverage for himself and his family, as well as disability coverage that provided an income while he was unable to work.
“You have to think about your situation,” Ehlert says. “If I’d been an accountant, I probably would have only missed a day or so of work. But you can’t shoe horses with a broken leg.”
This is a situation where you really need to look at your individual needs. Start by calculating your monthly bills. Take all your sources of income into consideration and how much you have in savings that you can tap in the event of an injury. You’ll need this information to decide what levels of insurance you want, and how soon after you are out of work you want payments to start.
Ehlert encourages farriers to regularly meet with their insurance agent and review their coverage.
“As your situation changes, your insurance needs change,” he says. “It’s important to make sure you have the coverage you need.”
