7948 Racing, Including Track Operation
NAICS CODE: 112920 Horses and Other Equine Production
711219 Other Spectator Sports
Suggested ISO Farm and Commercial General Liability Code(s): 01518, 01519, 01618, 01619, 01718, 01719, 01818, 01819
Suggested Workers Compensation Code(s): 0083
Description of Operations: Racehorse farms breed, raise, train, buy and sell horses specifically selected for their speed. Racehorses are expensive and can be temperamental. They require careful selection, excellent veterinary services and exceptional trainers. They are kept in open pastures or paddocks during warm weather but stay in barn stalls at night and when it is cold or rainy. They are fed specially designed feeds along with vitamins and supplements to keep them healthy and strong. The stalls must be cleaned regularly to remove manure and urine. Staff is on duty 24 hours a day to respond to the horses’ needs and to provide security. Racehorse farms often board and train animals belonging to others. Some grow grain and hay to feed the horses.
Property exposures are significant because of numerous ignition sources, such as heaters, electrical fixtures and smoking combined with combustible materials such as hay, straw, animal feed and bedding, oils and motor vehicle fuels. Lightning may strike buildings unprotected by rods and GFIs, and severe winds and tornados may destroy property in certain geographical areas. Most horse farms are located in rural areas where fire response time may be slow and a water supply to douse a fire may be undependable. Fire alarms, extinguishing and suppression equipment is standard. An evacuation plan should be part of the risk management plan to protect the horses in the event of an emergency.
Crime exposures are from employee dishonesty and theft, which can be substantial due to the value of the racehorses and their equipment. Pre-employment background checks should be done on all employees having access to the horses. Some prescription medications for animals may be targets for theft. To the extent possible, the premises should be secured and watch service considered in some cases. Theft exposures increase when the animals and their equipment are off-premises at race tracks or animal auctions. Ransom and extortion exposures could be significant, particularly for expensive, publicly known animals, their jockeys, trainers, or owners.
Inland marine exposures include computers, goods in transit, and valuable papers and records. Computers are used for recordkeeping. Records that need to be retained include documents relating to horses, such as ownership, lineage and medical treatment, and documents relating to pesticide and other chemical applications. Most operations have extensive mobile equipment exposures.
Bloodstock/Animal Mortality exposures include not only death of the horse but also fertility issues, theft, disability and loss of income. The horse's bloodline and its veterinary history should be reviewed along with the animal’s stabling conditions, experience of its trainers, anticipated travel schedule, type of transportation, security when away from premises, and loss history for the stable itself.
Premises liability exposures may be significant. Regular visitors to the premises include horse owners, trainers, prospective buyers, and veterinarians who can trip and fall on uneven walking surfaces, be injured by equipment, or interact with unpredictable animals. Visitors should be accompanied by an employee and not be permitted in restricted areas. The exposure increases if tours are conducted. Horses, farm equipment and facilities present an attractive nuisance to children. Barns should be secured after hours to prevent access by unauthorized trespassers. Housekeeping issues include keeping walkways clear of stable equipment and floor areas clean and dry. Fences should be well-maintained and parking areas free of debris and physical obstructions. Auctions and demonstrations may result in a large number of visitors. These events require additional security and emergency evacuation planning.
Off-premises exposures include race tracks where the horses will be competing.
Environmental impairment liability exposures are moderate due to the potential for air, land or water pollution from the use of agricultural chemicals and pesticides, disposing of animal waste and motor vehicle fuel storage tanks. Drugs, needles and syringes used to administer medications or to artificially inseminate horses are considered biohazardous waste and must be disposed of properly.
Automobile exposures are significant as horses are transported regularly. Other vehicles may be used to haul hay and feed, remove manure and other waste, and to run errands and pick up supplies. Horse trailers must be properly equipped and adequately maintained to keep horses safe and prevent them from escaping. Training and prior record of drivers, as well as condition and maintenance of vehicles, are the main items to consider. Drivers must be trained in handling sway in the trailers and driving during adverse conditions. Trip frequency, radius of operations, loading, unloading and climatic issues are important considerations.
Workers compensation exposures are high due to the use of equipment and interaction with unpredictable animals that can bite, kick, or suffocate an employee. Turnover may be high. Workers may be seasonal, speak another language, and lack adequate training or supervision. Slips, trips, falls, back injuries from lifting, eye injuries, and muscle strains are common. Exposure to farm chemicals and organic dust can lead to respiratory issues. Procedures should be in place for training and handling horses throughout all phases of the horse’s life on the farm. Employees should be educated about the diseases they may pick up diseases from working with the horses. As racehorses can be very expensive, employees may be injured or killed by thieves or by others at racetracks who may attempt to drug or maim an animal.
Minimum recommended coverages:
Buildings, Business Personal Property, Employee Dishonesty, Animal Mortality, Bloodstock, Computers, Goods in Transit, Livestock, Mobile Equipment, Valuable Papers and Records, General Liability, Employee Benefits, Environmental Impairment Liability, Umbrella Liability, Automobile Liability and Physical Damage, Workers Compensation
Other coverages to consider:
Business Income and Extra Expense, Earthquake, Equipment Breakdown, Flood, Spoilage, Computer Fraud, Forgery, Money and Securities, Accounts Receivable, Cyberliability, Employment-related Practices Liability, Stop Gap Liability
