Every boarding stable that I knew had liability insurance, but I know of only one incidence where that liability insurance company got taken for a ride, so to speak. A boarder who owned several horses at the boarding stable I was at in California was behind on her monthly board payments. The stable owner let her slide for several months until he got a letter from his insurance company. They were going to up his rate because they paid out on a claim. He was blind sighted by the claim because he knew nothing about it. So he made a call to the insurance company.
What the insurance company had paid out was about $500 in damages due to vandalism. The claim made by the boarder was that 2 of her horses had their long tails cut off. The stable owner had to go and take a look at the horses in question and call the insurance company back. What he found was that both horses’ tails had indeed been cut but only about 6 inches of it and the trails were still down to hock length. When he got back on the phone to the insurance company he told what he found and that the insurance company said they were sent photos and that since the boarder claimed she had lost revenue because they were show horses they agreed to the $500 payout. At this point the stable owner stated that the horses in question were not show horses and in fact he had never seen them being ridden or even groomed for a show. They horses never left the stable grounds in the last year to be shown anywhere. Now the insurance company was aware of a possible fraud case.
I do not know what happened after that phone call that the stable owner had with the insurance company but I do know that the boarder left suddenly a month later. When I asked about her leaving, all I got were blank stares and tight lips and a smile would emerge from the face of the stable owner.