Many horse owners have
just a few horses that they enjoy riding around the farm, on trail rides, or in
horse shows. Most of the time, these
owners don’t think about equine insurance needs or why some type of insurance
might be worth considering. Facility owners, and owners of expensive or specialized
horses may already be carrying some type of insurance on their animals and/or
business. The purpose of this article is
to provide some basic information on the types of insurance policies available
to horse owners and some pointers on what to consider when deciding on equine
insurance options.
There are several types of
coverage available to horse owners. They can be generally classified into two
categories – policies for the horse, and policies to protect the horse owner. First, let’s consider the types of coverages
that directly apply to the horse. These
include equine mortality insurance, major medical/surgical insurance, and loss
of use insurance.
Mortality insurance is
like life insurance for a horse. If a
horse that is covered under a mortality insurance policy dies, then a portion
of its value is paid to the owner. The
loss can be due to accident, injury, or illness, and some policies may cover
theft. Just read the fine print and
discuss the particulars of the policy with a reputable agent. Usually, an insurable horse is over six months
old and under 18 years, and be considered “sound and insurable”. Depending on the value of the horse, a veterinary
exam may be required before a policy will be issued. A policy may contain exclusions
based on pre-existing conditions, or the insurance company may refuse to write
a policy based on information about serious health problems. Rates vary according to the value of the
horse, the activity level – racing vs dressage, for example - and the breed.
Major Medical/Surgical
insurance is also a popular type of policy to have. This covers expenses related to medical and
surgical procedures for illness, sewing up cuts, anesthesia, x-rays, lab tests,
hospitalization, and some medications.
These policies usually do not cover vaccinations, worming, or dental
work. Be sure to read and understand
the policy limitations such as deductibles, annual aggregate limit, exclusions,
pre-existing conditions, and time limits.
Loss-of-Use or disability
policies will reimburse a portion of the horse’s value in the event of a
permanent disability. That would mean
the horse can no longer perform the insured use. An example would be if a show horse was injured
in an accident and could no longer show.
In that case, the owner of the insured horse would receive some
compensation. Policies can be external-injury-only
or full loss of use. The insurer will
likely require a full veterinary exam before issuing the policy.
Policies to help protect the
horse owner include specific horse owner’s liability policies, general equine
liability and professional liability insurance, care, custody, and control
policies, and umbrella policies. Some
homeowner policies may provide some coverage for horse related liability. That coverage should be verified with one’s
insurance agent.
A personal horse-owner’s policy
protects against lawsuits up to the limits of the policy, and may be offered as
an endorsement to a mortality policy.
Some policies may allow up to five horses on the same policy with no
extra premium charged. This insurance
is not available to commercial equine operations (boarding, training, etc.) and
covers injuries to others or property damage.
Commercial general equine
liability and professional liability insurance provides liability coverage for
folks with commercial equine business interests. These policies cover injury to others and
property damages, and will have higher premiums than personal horse owner
policies.
Care, Custody, and
Control policies are for folks who board and train horses. Again, this is liability coverage to protect
against liability lawsuits for injury or property damage.
An Umbrella policy might
be considered to increase one’s liability limit, especially people with significant
assets that could be targeted in a lawsuit.
When deciding on any
insurance policy, be sure to work with a trusted insurance professional. They can speak the insurance language and
understand what a policy includes or may not cover. Decide on the type of
insurance desired or needed, and the coverage limits that are acceptable and affordable. This all comes down to the level of acceptable
risk and the tradeoff between acceptable risk and affordability. Working with a trusted agent, be sure to understand
what is included and not included in a policy, such as policy limits, deductible
amounts, pre-existing conditions, exclusions, and other pertinent information contained
in a policy.
