Equine Insurance FAQ's
Q: At what ages can I insure my horses?
A: Full Mortality Coverage: Horses over 24 hours old through 18 years
Major Medical / Surgical: Horses over 31 days through 15 years old
Surgical Only: Horses over 31 days
Extended Named Perils: Horses over 24 hours old
Q: Are there any uses/disciplines which do not qualify for coverage?
A: Race horses, horses in race training, or horses intended to race do not qualify for Major Medical/Surgical, Surgical Only, or Loss of Use coverages. Your horse’s use and level, and any intended uses during the policy period must be stated on the mortality application.
Q: Is my horse insured when we drive to another state?
A: Yes, coverage is in force while your horse is traveling by land or air throughout the continental U.S. and Canada.
Q: What if I’m buying a horse that’s in another country, or I'm traveling with him out of the U.S. for a competition? Will he have coverage while we are abroad and in transit?
A: Full Mortality and Major Medical/Surgical or Surgical Only coverage can usually be extended while the horse is located in most other countries. Usually all that is required is prior notice as well as an additional premium -- but underwriting approval must be obtained before any coverage is in place. Quarantine expenditures are not covered. Ask the agent for more details. NOTE: If the company is not notified of the horse's international travels, absolutely no coverage will be provided.
Q: Can I get Major Medical/Surgical, Surgical Only, or Loss of Use coverages by themselves?
A: No. These coverages are only available as endorsements added on to a Full Mortality policy.
Q: Do I need to have my veterinarian examine my horse before I can start a policy?
A: To insure for Full Mortality, with most companies a veterinary exam is usually not required as long as your horse is age 15 or under, sound and healthy, and you are insuring him for $50,000 or less. If you are insuring for more than $50,000, a basic exam is required.
If you are interested in Loss of Use coverage, regardless of the horse's value, you will be required to submit at least a basic veterinary certificate, and depending on the type of Loss of Use coverage you are interested in, you may need very detailed veterinary exam (similar to a pre-purchase exam).
Q: Can I start coverage today?
A: We can bind coverage upon receipt of underwriting approval, which generally can be the same day we receive all the required paperwork if it is during business hours, Monday through Friday. Paperwork can be submitted by fax, email or mail. Providing we receive underwriting approval, we would then email and mail you an insurance binder that would give you approximately two weeks to submit at least the first payment, at which time the company will issue the policy.
Q: What are my payment options?
A: You can pay by personal check, money order, Visa, MasterCard, or Discover. Payment plans are also available.
Q: Will I need to provide a new veterinary exam when I renew my horse's policy?
A: As long as your horse is sound and healthy, under 16 years old and his insured value is $50,000 or less, you should not have to provide a vet certificate at renewal. You will need a current vet certificate if the horse will be insured for more than $50,000. Also, the underwriters may ask for a veterinary certificate due to advanced age of the horse (16 or older) or if the horse has experienced health issues during the policy period.
Q: I just purchased a new horse. How much can I insure him for?
A: You can insure your horse for his fair market value or any lesser amount. Fair market value would be the amount you could expect to receive if you sold your horse right now, therefore, with a recently purchased horse, the purchase price would be considered fair market value.
Q: I purchased my horse several years ago, and he's definitely increased in value due to training and competition. How much can I insure him for?
A: As above, you can insure him for his fair market value. In this case, since it would be more than his purchase price, you would need to provide substantiation for the increase in value. You can use the Justification of Value form (on the Forms and Applications page) which will help you list the horse's competition record, professional training fees paid, and other relevant information. This information is normally sufficient. Give us a call and we'll help you determine what you'll need.
Justification of Value Application
Q: My horse is a three-year-old homebred with no performance record yet. How do I determine his value?
A: The basic formula used for homebred horses is three times their sire's stud fee. If you believe your horse is worth more than that due to training, performance, etc., contact our office and we can discuss this with you in detail.
Q: I'm most worried about being able to pay the vet bills if my horse becomes ill or has an injury. What types of coverages are available?
A: If your horse is from the age of 31 days and 15 years, you should seriously consider adding Major Medical/Surgical coverage to your mortality policy. This coverage will reimburse you for covered veterinary costs (both medical and surgical) in the event your horse has an injury, illness, accident or disease.
Remember, while your mortality policy provides coverage for humane destruction, it does not cover economic destruction. If your horse develops a serious condition that requires costly medical or surgical care, and the veterinarians believe that treatment is warranted, you are expected under the terms of the mortality policy to provide for that care. If you don't have the funds to pay the expected veterinary fees, and instead choose to put your horse down, the mortality coverage would not apply.
Q: What if my horse has a health problem during the policy? Will I be able to renew the policy?
A: Most often the company will offer to renew your policy, but may apply an exclusion for that specific problem if they deem it necessary and/or may apply a debited rate for coverage.
Q: If I board my horse, isn't he covered by the people that own and manage the barn?
A: No. The only coverage that might apply would be if the people operating the boarding business have Care, Custody & Control (CCC) coverage, which is a liability coverage meant to protect them in the event a client's horse in their care is injured or killed, and the client feels it was due to their negligence and sues them. CCC does not protect you as the horse's owner, therefore, a Full Mortality policy with Major Medical/Surgical coverage is definitely a good idea.
Q: How does Loss of Use coverage work?
A: Loss of Use helps to reimburse you for a percentage of your horse's insured value in the event he is permanently unable to perform his insured use.
Loss of Use is only available for performance horses, not breeding or pleasure horses, and even then, is only available for some disciplines. This coverage is relatively complex. Contact our office and we will give you all the details.
Q: Is there any type of infertility coverage for my breeding stallion?
A: Yes. Stallion Accident, Sickness and Disease coverage can be added to your proven stallion's mortality policy. It will reimburse you for a percentage of his insured value in the event he permanently can no longer get mares in foal as the result of an accident, sickness, or disease.
Q: Why do you need equine insurance?
A: Those who work with horses on a regular basis know that no matter how carefully an event is planned,
the unexpected can happen and people can get hurt. Without equine liability insurance you’re left
paying for the cost of your defense or damages suffered.
Q: What do equine general liability policies cover?
A: General policies usually cover you anywhere within the United States, territories of the United States,
and within Canada. The policy covers damages due by law by you or a business you own. The cost
of defending yourself or business against a claim is also covered. An admitted, A-rated US insurance
company will often write coverage on a full occurrence basis design specifically for your needs. General
policies usually also cover your place of residence, venue, volunteers, co-producers, and sponsors as
additional insured individuals.
Q: What is a certificate of Insurance as opposed to an additional insured endorsement?
A: A certificate of insurance can be used to prove you are insured. The certificate includes the policy
term dates, the type of coverage, and the limits of the policy for each coverage. An additional insured
endorsement can be added at your request for vendors or sponsors who will be covered under your
policy should a claim result from your negligent acts, any fault of their own will not be covered.
Q: What does third part property damage liability cover?
A: Many liability policies include a clause that excludes coverage for loss or damage of property while in
the care of a third party. Third party liability coverage, also known as care, custody, and control liability,
is an optional coverage choice that will pay for damage or loss as the result of negligence to horses
under your control.
Q: What is a waiver of subrogation?
A: At times a lease agreement or contract requires the party or parties to relinquish their rights of
subrogation-- subrogation being the right to take the place of another party to bring a claim for damages
on a policy. For example, if the actions of a third party result in the loss or damage of your property.
Under normal circumstances you could sue the responsible party for full restitution. However, if your
insurance company pays the claim the insurer becomes subrogated to the claim against that third party
and you can no longer sue. Essentially, your insurer is granted the right to recover funds extended after
paying your claim. Before signing a contract that waives your right to subrogation, be sure to confirm
this action does not violate the terms of your insurance policy. Policy violations of this nature can often
result in the revocation. Your insurance agent can advise you of your options. For instance, you may
need to add an endorsement to the policy to allow for the waiver, though such changes often require an
addition premium.
Q: At what ages can I insure my horses?
A: Full Mortality Coverage: Horses over 24 hours old through 18 years
Major Medical / Surgical: Horses over 31 days through 15 years old
Surgical Only: Horses over 31 days
Extended Named Perils: Horses over 24 hours old
Q: Are there any uses/disciplines which do not qualify for coverage?
A: Race horses, horses in race training, or horses intended to race do not qualify for Major Medical/Surgical, Surgical Only, or Loss of Use coverages. Your horse’s use and level, and any intended uses during the policy period must be stated on the mortality application.
Q: Is my horse insured when we drive to another state?
A: Yes, coverage is in force while your horse is traveling by land or air throughout the continental U.S. and Canada.
Q: What if I’m buying a horse that’s in another country, or I'm traveling with him out of the U.S. for a competition? Will he have coverage while we are abroad and in transit?
A: Full Mortality and Major Medical/Surgical or Surgical Only coverage can usually be extended while the horse is located in most other countries. Usually all that is required is prior notice as well as an additional premium -- but underwriting approval must be obtained before any coverage is in place. Quarantine expenditures are not covered. Ask the agent for more details. NOTE: If the company is not notified of the horse's international travels, absolutely no coverage will be provided.
Q: Can I get Major Medical/Surgical, Surgical Only, or Loss of Use coverages by themselves?
A: No. These coverages are only available as endorsements added on to a Full Mortality policy.
Q: Do I need to have my veterinarian examine my horse before I can start a policy?
A: To insure for Full Mortality, with most companies a veterinary exam is usually not required as long as your horse is age 15 or under, sound and healthy, and you are insuring him for $50,000 or less. If you are insuring for more than $50,000, a basic exam is required.
If you are interested in Loss of Use coverage, regardless of the horse's value, you will be required to submit at least a basic veterinary certificate, and depending on the type of Loss of Use coverage you are interested in, you may need very detailed veterinary exam (similar to a pre-purchase exam).
Q: Can I start coverage today?
A: We can bind coverage upon receipt of underwriting approval, which generally can be the same day we receive all the required paperwork if it is during business hours, Monday through Friday. Paperwork can be submitted by fax, email or mail. Providing we receive underwriting approval, we would then email and mail you an insurance binder that would give you approximately two weeks to submit at least the first payment, at which time the company will issue the policy.
Q: What are my payment options?
A: You can pay by personal check, money order, Visa, MasterCard, or Discover. Payment plans are also available.
Q: Will I need to provide a new veterinary exam when I renew my horse's policy?
A: As long as your horse is sound and healthy, under 16 years old and his insured value is $50,000 or less, you should not have to provide a vet certificate at renewal. You will need a current vet certificate if the horse will be insured for more than $50,000. Also, the underwriters may ask for a veterinary certificate due to advanced age of the horse (16 or older) or if the horse has experienced health issues during the policy period.
Q: I just purchased a new horse. How much can I insure him for?
A: You can insure your horse for his fair market value or any lesser amount. Fair market value would be the amount you could expect to receive if you sold your horse right now, therefore, with a recently purchased horse, the purchase price would be considered fair market value.
Q: I purchased my horse several years ago, and he's definitely increased in value due to training and competition. How much can I insure him for?
A: As above, you can insure him for his fair market value. In this case, since it would be more than his purchase price, you would need to provide substantiation for the increase in value. You can use the Justification of Value form (on the Forms and Applications page) which will help you list the horse's competition record, professional training fees paid, and other relevant information. This information is normally sufficient. Give us a call and we'll help you determine what you'll need.
Justification of Value Application
Q: My horse is a three-year-old homebred with no performance record yet. How do I determine his value?
A: The basic formula used for homebred horses is three times their sire's stud fee. If you believe your horse is worth more than that due to training, performance, etc., contact our office and we can discuss this with you in detail.
Q: I'm most worried about being able to pay the vet bills if my horse becomes ill or has an injury. What types of coverages are available?
A: If your horse is from the age of 31 days and 15 years, you should seriously consider adding Major Medical/Surgical coverage to your mortality policy. This coverage will reimburse you for covered veterinary costs (both medical and surgical) in the event your horse has an injury, illness, accident or disease.
Remember, while your mortality policy provides coverage for humane destruction, it does not cover economic destruction. If your horse develops a serious condition that requires costly medical or surgical care, and the veterinarians believe that treatment is warranted, you are expected under the terms of the mortality policy to provide for that care. If you don't have the funds to pay the expected veterinary fees, and instead choose to put your horse down, the mortality coverage would not apply.
Q: What if my horse has a health problem during the policy? Will I be able to renew the policy?
A: Most often the company will offer to renew your policy, but may apply an exclusion for that specific problem if they deem it necessary and/or may apply a debited rate for coverage.
Q: If I board my horse, isn't he covered by the people that own and manage the barn?
A: No. The only coverage that might apply would be if the people operating the boarding business have Care, Custody & Control (CCC) coverage, which is a liability coverage meant to protect them in the event a client's horse in their care is injured or killed, and the client feels it was due to their negligence and sues them. CCC does not protect you as the horse's owner, therefore, a Full Mortality policy with Major Medical/Surgical coverage is definitely a good idea.
Q: How does Loss of Use coverage work?
A: Loss of Use helps to reimburse you for a percentage of your horse's insured value in the event he is permanently unable to perform his insured use.
Loss of Use is only available for performance horses, not breeding or pleasure horses, and even then, is only available for some disciplines. This coverage is relatively complex. Contact our office and we will give you all the details.
Q: Is there any type of infertility coverage for my breeding stallion?
A: Yes. Stallion Accident, Sickness and Disease coverage can be added to your proven stallion's mortality policy. It will reimburse you for a percentage of his insured value in the event he permanently can no longer get mares in foal as the result of an accident, sickness, or disease.
Q: Why do you need equine insurance?
A: Those who work with horses on a regular basis know that no matter how carefully an event is planned,
the unexpected can happen and people can get hurt. Without equine liability insurance you’re left
paying for the cost of your defense or damages suffered.
Q: What do equine general liability policies cover?
A: General policies usually cover you anywhere within the United States, territories of the United States,
and within Canada. The policy covers damages due by law by you or a business you own. The cost
of defending yourself or business against a claim is also covered. An admitted, A-rated US insurance
company will often write coverage on a full occurrence basis design specifically for your needs. General
policies usually also cover your place of residence, venue, volunteers, co-producers, and sponsors as
additional insured individuals.
Q: What is a certificate of Insurance as opposed to an additional insured endorsement?
A: A certificate of insurance can be used to prove you are insured. The certificate includes the policy
term dates, the type of coverage, and the limits of the policy for each coverage. An additional insured
endorsement can be added at your request for vendors or sponsors who will be covered under your
policy should a claim result from your negligent acts, any fault of their own will not be covered.
Q: What does third part property damage liability cover?
A: Many liability policies include a clause that excludes coverage for loss or damage of property while in
the care of a third party. Third party liability coverage, also known as care, custody, and control liability,
is an optional coverage choice that will pay for damage or loss as the result of negligence to horses
under your control.
Q: What is a waiver of subrogation?
A: At times a lease agreement or contract requires the party or parties to relinquish their rights of
subrogation-- subrogation being the right to take the place of another party to bring a claim for damages
on a policy. For example, if the actions of a third party result in the loss or damage of your property.
Under normal circumstances you could sue the responsible party for full restitution. However, if your
insurance company pays the claim the insurer becomes subrogated to the claim against that third party
and you can no longer sue. Essentially, your insurer is granted the right to recover funds extended after
paying your claim. Before signing a contract that waives your right to subrogation, be sure to confirm
this action does not violate the terms of your insurance policy. Policy violations of this nature can often
result in the revocation. Your insurance agent can advise you of your options. For instance, you may
need to add an endorsement to the policy to allow for the waiver, though such changes often require an
addition premium.