Equine Insurance Considerations

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.