Kate and Carl are siblings who want to start a horse-training business. They both have considerable experience working with horses, and both want to be involved in the business, including daily training of horses. They have spoken to an insurance agent about getting insurance to cover the potential liabilities, but they were told that they can't get insurance to cover this type of high-risk business (because of the potential for personal injury).

They come to your firm seeking advice about forming their business; they are particularly concerned about their potential liabilities, especially to any other trainers that they might hire