Quick facts
-
Use written contracts for any horse-related agreement.
-
Make sure written agreements are specific and address each applicable risk.
-
Work with an attorney to make sure your agreement language can be enforced under Minnesota law.
-
Having the proper insurance can protect you and your assets if someone files a lawsuit against you.
This article is for informational purposes only and doesn’t provide legal advice.
Using written agreements to limit your liability
One of the best ways to limit your liability is to use written agreements for
-
Releases of liability
-
Sales and leases
-
Boarding
-
Employment
-
Training
Make sure your written agreements match your aim and can be enforced under law.
Under Minnesota law (Minn. Stat. 604.055, Subd. 1.):
-
An agreement that aims to release, limit or waive a party’s liability resulting from behavior that amounts to “greater than ordinary negligence” is against public policy, void and not enforceable.
-
A party can agree to release, limit or waive liability for damage, injury or death resulting from “ordinary negligence or for risks that are inherent to a particular activity.” Those involved in horse-related activities are legally allowed and thus should always use releases to protect themselves from these risks.
-
Clearly state what the document is providing.
-
For example, waiver/release, lease or purchase agreement, boarding contract, etc.
-
-
Identify the parties to the document and include each person and entity you are releasing.
-
State the valid date or term of the agreement except for liability waivers and releases, which shouldn’t expire.
-
Precisely define the scope of the release, the built-in risks of the activity and what specific risks you are releasing.
-
Make sure that the signer has read the whole document before signing it and has "legal capacity" to sign it (e.g., isn’t a minor).
-
Make all visitors and guests sign a release, not just participants or riders.
-
Keep copies of your documents.
Work with an experienced attorney to make sure your release language can be enforced under Minnesota law. Besides writing effective agreements and releases, lawyers can advise you on other good risk management tools. This may include deciding whether you should set up and work under a separate legal business entity, and whether you are properly insured for your horse activities.
Even if you use "best practices" to limit your liability, there’s nothing stopping someone from filing a suit against you. If someone sues you for a horse-related event, having the appropriate insurance can help protect you and your assets.
Most liability insurance plans provide defense and indemnity coverage.
-
Defense coverage: The insurer will provide an attorney to defend you against a lawsuit covered by the plan.
-
Indemnity coverage: The insurer will pay any judgment or settlement you must pay, and that the plan covers, up to the applicable insurance limit.
Horse business owners should talk to an attorney and insurance professional to make sure they’re adequately protected.
Personal horse owners should purchase liability insurance that will provide defense and indemnity coverage in the event of a lawsuit.
NOT LEGAL ADVICE: This information has been prepared for general information purposes only. The information is not legal advice. Legal advice is dependent upon the specific circumstances of each situation. Also, the law may vary from state to state, so that some information may not be correct for your jurisdiction. The information can’t replace the advice of competent legal counsel licensed in your state.
Reviewed in 2021