Property and livestock insurance has a wide range of coverage options. Understanding how these policies work can help you choose the proper protection for your horse.
For example, primary medical coverage reimburses diagnostic procedures, medication, and veterinary visits when treating an illness or injury. This is similar to human health insurance.
Property Coverage
Your horse is a part of your life, and you must be sure you’re covered in a tragedy. There are several different types of horse insurance coverage, so it’s essential to understand what each one offers and how much you can expect to pay for it.
For example, equine mortality insurance reimburses you for the value of your horse if it dies due to a covered accident or illness. It can also cover the cost of replacing your horse if it’s stolen and not found, or even if it was injured by a freak accident.
Primary medical and surgery insurance is another option, which covers veterinary costs like diagnostic procedures, medication, and surgeries that aren’t usually covered by traditional policies. These policies have a yearly deductible and limits; most require you to meet specific requirements.
Loss of use coverage is another popular policy that provides a payout if you aren’t able to utilize your horse for income-generating activities due to an insured loss, such as an injury or death. These policies are an excellent option for breeders and other professional horse owners who use their horses in a business that requires them to be on the premises.
Liability Coverage
Many types of horse insurance policies safeguard owners against various potential losses. These include accidents, property damage, liability, medical cost, theft, and unexpected death.
A standard policy is Major Medical, which provides for veterinary expenses if your horse becomes sick or injured. This coverage also covers surgeries, but only if you pursue the treatment.
The policy has a limit and may include deductibles. Exclusions vary from company to company, including pre-existing conditions, elective procedures, and routine veterinary care.
This coverage is usually a part of equine commercial or farm liability policies. It protects you if a claim is made against you for bodily injury or property damage to another person due to your negligent actions while handling horses in your care, custody, or control.
Liability limits can be purchased in increments and are available as a per-occurrence liability or a general aggregate limit. A per-occurrence policy will pay a maximum of $1 million for any one claim, while an available aggregate will pay a maximum of $2 million annually.
Loss of Use Coverage
Loss of use coverage reimburses you for a portion of your horse’s value if it becomes permanently disabled. This type of policy is generally designed for performance horses but can also be purchased as a standalone option.
Some policies offer complete loss of use, which covers your horse if it becomes permanently incapable of performing its insured function due to accidents, illness, injury, or disease. This is typically a complex claim to establish and may take months before payment is received. Still, it’s important to remember that it protects your investment if your horse can no longer perform his intended activities.
In addition to the loss of use, many companies also provide liability insurance that covers your legal fees if your horse is sued due to an accident or illness. This is often included in a provincial equestrian federation membership, but it can be purchased as an add-on for those who aren’t members.
Mortality Coverage
Mortality insurance pays out the total insured value of your horse, whether he dies from an accident or disease. Complete mortality plans also include coverage for the humane destruction of the horse by a veterinarian, which is a benefit that can be extremely helpful.
In addition, many companies offer major medical and surgery endorsements on mortality policies that can help cover costs associated with medical treatment, wound care, or surgeries not generally covered under the basic policy. However, time limits are often imposed for each type of injury or illness, and specific exclusions may exist.
Most of these plans have a very small (about $50) to no deductible, and the amount you are reimbursed for in a year is typically about $5000. These plans can be added to your horse’s mortality policy for a flat fee based on the coverage limit and the deductible.
