What my lawyer told me was that in the state of Ohio there is an Equine Activity Liability Act that is supposed to prevent someone who participates in any recreational activities involving horses from suing the owner.
Ohio Equine Activity Liability Act
The reason that I would get insurance is to cover myself just in case and if anything were to happen at all I'd want to help out as much as possible because they are my horses. Most of the people who do Pony Parties in Ohio are not even insured. But I want to be because it's the right thing to do.
The reason that I'd have to have a liability paper signed by every adult who lets their child on my horse is because most people are unaware of the law and if anything were to happen I'd have proof that I made them aware of it.
The first thing I need though, is a pony that is absolutely bomb proof and I would never take one to a party without testing it's capabilities first. We are going to have a corral to set up so that children cannot run around the pony during rides and such. I know horses are unpredictable which is why I will have a helmet and helper with me and the pony at all times. I would check the tack used before every ride. I've discussed this with an insurance agent and my lawyer. I've also talked to the Ohio Department of Agriculture about being licensed. I've also done a lot of comparison shopping. We probably won't start this anytime soon but I want to be prepared if we do. If I can't make money off of it then I won't do it. BUT if I don't start finding a way to bring in money to help out in horse care then I might have to reduce my numbers and I don't want to do that.