Whether or not to purchase insurance for your horse is a personal and economic decision. The annual premium is usually based on the purchase price of the horse, although bloodline, performance record, and breeding use can influence the fee. While people are often put off by premiums, a single equine emergency can cost many times more than that.
There are many kinds of insurance: Medical, Mortality, Surgery, Loss of Use, Liability, and Boarding among others. Jorene Mize Insurance Agency specializes in Equine Insurance. The excellent FAQ on her website answers most questions. www.http://mize-insurance.com/faq/
One important piece of paper is a legal waiver or ‘hold harmless agreement.’ This must be signed by anyone who comes to the stable, even if you live in a state that has the ‘inherent risk’ (ride at your own peril) laws. Primarily intended to relieve you of any liability in case of an accident by riders, it should be signed by anyone visiting for any reason. Insurance companies and personal injury lawyers will try to find ways to invalidate the waiver, but it provides at least a smidgin of legal protection. Stablewise is a site with comprehensive information for small farm design and management. You can find a sample hold harmless agreement here: (http://www.stablewise.com/forms.htm)