In my last article, I explained the basics of the Virginia Equine Limited Liability Statutes and the type of liability protection those statutes offer in relation to the injuries a person sustains while engaging in an equine activity. That article also briefly mentioned that signed releases and waivers of liability can offer additional liability protection. A question is now looming: if Virginia law offers this liability protection when someone is injured while participating in an equine activity, and when there is added protection available with properly drafted and executed liability releases and waivers, why do you need liability insurance?
The best way to answer that question may be with an example. Consider this scenario - an independent riding instructor is teaching a lesson to an adult student riding her own horse at the stable where the horse is boarded. The student has properly read and signed well-drafted liability releases for the instructor and for the boarding stable. After the lesson has started, the stable owner begins to mow the grass directly next to and around the riding ring using a riding lawn mower in poor condition. The horse does not appear to be nervous, but, knowing that the student knows her horse better than she does, the instructor asks the student if she would like to continue with the lesson. The student says yes and the lesson continues. Shortly thereafter, the lawn mower loudly backfires, the horse spooks, and the student falls off, breaks her arm, and has to go to the emergency room for treatment. Within the allowed timeline, the student sues both the riding instructor and the stable owner for the injuries she sustained in the fall.
How would Virginia law apply in this situation? Because the injury occurred while the student was engaging in an equine activity, and because the instructor arguably did not take any actions that could be considered negligent, the instructor would receive the limited liability protection offered under Virginia law. Additionally, because the riding instructor had a properly drafted, read, and signed liability release, she would have its protection as well. However, even with the signed release and Virginia’s limited liability statutes, the riding student is not prevented from filing a lawsuit against the instructor, and the instructor will have to defend herself from that lawsuit. Here is where the instructor’s liability insurance coverage would kick in and arrange for the instructor’s legal defense (in this example, the instructor has two affirmative defenses: (1) the protection offered by Virginia law, and (2) the protection offered by her signed release). Without insurance coverage, the instructor would either have to pay an attorney to defend her or go at it alone in court to defend herself.
But, what about the suit against the stable owner? The student may argue that her injuries were caused by the owner’s action of mowing the grass with a known broken mower, which caused her horse to spook, which lead to her fall and broken arm. Unlike the riding instructor, the stable owner did take some action that can be directly linked to the horse spooking - mowing the grass with a broken lawn mower. Arguably, mowing the grass around the riding ring while someone is riding in it, especially if the person was riding before the lawn mowing commenced, with a mower in known poor condition, could be considered grossly negligent (or, in other words, a really bad decision by the stable owner that directly lead to the student’s injuries). That stable owner’s liability insurance would step in to defend the stable owner in the lawsuit and, when the affirmative defenses described above don’t work (gross negligence is not protected by the limited liability statutes or generally by releases of liability), and if the student is awarded damages (or there is a settlement), the insurance policy would cover the amount awarded (under the terms of the policy).
So, why have a liability insurance policy even though Virginia law offers limited liability and because a signed release and waiver of liability offers even more protection? Because, even with that liability protection, you might get sued, and a liability insurance policy will help defend your case (and in the event that you lose the case, the insurance will pay for the damages up to the amount of coverage specified in your insurance policy).
This article is meant for informational purposes only and is not intended as legal advice. Jennifer Wolz, Esq. is an attorney licensed to practice law in Virginia. She is the managing member of Wolz Law, PLC, based in Southwest Virginia. As a lawyer, horse owner, and an active equine professional (visit www.wolzequestrian.com), Jennifer has a true understanding of the specific needs and concerns faced by horse owners and horse professionals. Jennifer welcomes your equine related legal questions, basic examples of which might be used for future articles. Jennifer is also available to assist you with non-equine related legal needs.
Please contact Jennifer at (540) 494-3819 or jwolz@wolzlaw.com with your questions. Also, please visit Virginia Equine Legal Services at www.vaequinelegalservices.com. Virginia Equine Legal Services is a working section of
Wolz Law, PLC (www.wolzlaw.com).
