Unfortunately, much of what happens in life is out of our control. Insurance can’t prevent bad things from happening, but it offers a financial buffer when they do.

Here, we’ll review the most common equine policies, what they entail, and different circumstances to consider.

Most Common Equine Insurance Policies

Restricted Perils

Also called Specified or Named Perils, Restriced Perils is the least expensive option and covers only what is listed in the policy, such as death by wind, fire and/or smoke, lightning, collision, or overturn in vehicular transit. Depending on the company, it may include theft.

Full Mortality

A full mortality insurance policy covers death due to any cause, except for willful neglect or destruction. It covers the insured horse in the event that he dies or must be humanely destroyed due to illness, accident, injury, disease, fire, smoke, lightning or theft.

Think of Restricted Perils and Full Mortality policies as “life insurance.”

Major Medical

Major Medical protects the horse owner against covered medical, veterinary, and surgical costs up to a specified amount per policy year.

Surgical

This policy reimburses for covered surgical expenses up to a specified amount per policy year. Surgical coverage applies to necessary procedures performed under general anesthesia, not elective surgeries, like castration.

Colic

This equine insurance policy reimburses for a medical or surgical colic.

Major Medical, Surgical and Colic endorsements aren’t available on their own, but can be added to a Full Mortality policy. Think of these policies as “health insurance.”

Equine Insurance Policy Details

“Full Mortality is the base policy, and then you can add to it,” says Rhonda Mack, an agent in the Ocala, Fla., office of EPIC Insurance, a nationwide company.

“Most insurance companies include a colic surgery endorsement with Full Mortality, but you can add additional coverage on top of that,” says Mack, noting that some companies allow “stacking” of endorsements.

A colic endorsement has a $10,000 limit and will reimburse the owner for medical or surgical colic expenses for an insured horse.

Major Medical typically covers issues like lameness, gastric ulcers, eye injuries, clinic costs, MRIs, et cetera, plus surgical costs, such as colic surgery. Some insurance companies include acupuncture and chiropractic in their Major Medical policy, but coverage varies with each company, so read your policy carefully.

The decision to purchase equine insurance is both financial and emotional.

“It’s based on your comfort level and what you worry about happening to your horse,” says Mack. “If your horse is facing a $12,000 colic surgery and you have to make a decision based on if you can afford it or not, insurance can give you peace of mind, knowing you have help with veterinary expenses.”

Horse Value

The premium for Full Mortality coverage is determined by the price you paid for the horse and his use (pleasure, show, racing, or breeding). If you bred the horse, your insurance agent can help determine a value based on stud fee, bloodlines, sales averages, et cetera.

“Most carriers now require a minimum Full Mortality insurance amount of $15,000 to be eligible for Major Medical,” says Mack.

The following examples are based on December 2023 policy prices.

An 8-year-old dressage horse insured for $25,000 under Full Mortality with a $10,000 major medical policy would have an annual premium of approximately $1,375.

A 10-year-old Quarter Horse trail horse insured for $5,500 with a $10,000 surgical endorsement and $5,000 free colic surgery would have an annual premium of approximately $350.

Reimbursement

Major Medical already includes surgical expenses up to a specified amount. For a relatively low price (usually under $200), owners can add a $10,000 surgical endorsement to their Full Mortality coverage.

Endorsements function by reimbursement, rather than paying the veterinarian directly. The horse owner pays the veterinarian and then turns in the invoices and veterinary report to be reimbursed for the covered expenses, less any deductible and copay.

For example, if the insured horse required a $9,000 colic surgery, after the deductible and co-pay are applied, the owner would be reimbursed about $8,000.

Horse Age

Age comes into play when insuring horses.

“After age 15, premiums get higher,” says Mack. “Most companies will insure to age 18, some to age 20. We consider all horses’ birthdays to be January 1, even if they’re born in June.”

Even though full mortality and surgical coverage aren’t usually available after age 20, Restricted Perils coverage is still offered.

Individual Horse Owner’s (IHO) Liability Coverage

Individual Horse Owner’s (IHO) liability coverage has nothing to do with the health of the horse. This policy protects the owner in the event their horse causes damage to a person or property.

“Equine liability is recommended,” says Mack. “Any time you own a horse, you have risk exposure.”

Coverage provides liability protection in many situations, such as if your horse gets loose at a show and injures someone.

You don’t need to own property to purchase this coverage, and it’s for those who don’t derive income from their horses. With IHO liability, the premium is based on the number of horses owned.

Mack says that an IHO liability policy with $1 million coverage covering a few horses generally costs less than $400 a year.

Many people mistakenly assume their personal homeowner’s policy extends to cover damage or injury caused by horses.

Insurance for Equine Businesses

People who own breeding and training farms or boarding stables should have a commercial liability or farm package policy, which includes the residence on the property as well as equine owner’s liability coverage. Care, custody & control is another option if you board horses you don’t own.

Let’s say your horse breaks through the fence and ends up on the road, causing an auto accident. If there is damage to the car and/or an injury or death of the car’s occupant(s), a resulting claim would not be covered under most homeowner’s policies.

However, if found negligent, it would be covered under a commercial farm owner’s policy or IHO liability policy. (Equine liability policies also cover defense costs).

Key Takeaway

If you decide to consider insurance coverage, don’t be afraid to talk to more than one provider, get multiple quotes, and ask plenty of questions.

In the end, your peace of mind is worth every penny.

This article about equine insurance policies appeared in the April 2024 issue of Horse Illustrated magazine. Click here to subscribe!

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Since 1992, Laura Connaway of Connaway and Associates Equine Insurance Services, Inc. has been working with her team to bring a personalized touch to the horse insurance market, offering competitive coverage for horses, horse farms, and equine liability. As an insurance agent, the most important part of the role is to inform and educate clients so they understand the coverages that are available to suit their individual needs. Laura addresses several of the most commonly asked questions below.

When do I need to notify my insurance company of changes in my horse’s condition?

Your insurance carrier requires notification of any changes in the condition of your horse. It is a part of your insurance contract to notify the insurance carrier of any accidents, illnesses, injuries, diseases, lameness, or any time your horse receives non-routine care. Late reporting may impact your coverage under the policy and may affect your ability to make a successful claim. If you do not plan to file a claim, an incident-only report can be provided to fulfill your requirement to notify the insurance company of the change in condition.

Should I call my vet or my insurer first in case of a medical emergency?

In the event of a medical emergency, contact your veterinarian immediately and proceed with life-saving care. Next, contact your insurance carrier using the emergency phone number in your policy or listed on the ID cards provided by your agency. The carriers we work with all have 24/7 emergency numbers. Our agency also monitors the phone for emergencies and will assist our clients in the event of an after-hours emergency. It is important to provide insurance emergency contact information to your horse’s caregivers so they know who to contact in the event of an emergency.

I would like to change my horse’s insured value. How would I go about it?

In a horse mortality policy, Full Mortality is the base coverage; it reimburses you up to the insured value of the horse for death, theft, and authorized humane destruction. If you think the Full Mortality Value/Insured Value of your horse has changed during your policy period, contact your agent. If you would like to request an increase in the insured value due to show results or professional training, your agent will provide this information to the insurance underwriter for a value review. If the insurance underwriter agrees with your requested value, a policy endorsement will be issued to increase the Full Mortality limit in your policy. If you would like to request a decreased value, this can be done at any time. Value changes can be requested at any time during the policy period; contact your agent to discuss the process. The available medical options may change if the full mortality value is changed.

My horse has changed careers. Do I need to let my insurer know?

The “use” of your horse refers to the job or jobs your horse performs, such as show hunter, show jumper, dressage, eventing, barrel racing, trail riding, roping, driving, or breeding, to name a few. If you decide to switch disciplines or add additional disciplines to your horse’s résumé, then that means the “use” of your horse has changed. For example, if you start jumping your dressage horse, start eventing your show jumper, move your event horse up a level, or decide to breed your horse, the “use” of your horse has changed. The insurance carrier requires notification of a change or addition to your horse’s use. The available coverages and insurance carrier ratings vary by use. If a change in use is not reported to the insurance company, your coverage may be impacted in the event of a claim.

I’m buying a new horse — how does that affect its insurance coverage?

In order to insure a horse, you must have an insurable interest. If you purchase a new horse in full and you are the only owner, you are the only party with a financial interest/insurable interest in the horse, and you need to take out an insurance policy in your name (or the name of the entity that owns the horse). The seller (if paid in full) no longer has an insurable interest in the horse, and any insurance on the horse carried by the seller ceases when the horse is sold. All parties with a financial interest in the horse must be disclosed in the insurance application (for example, owner, co-owner, lessee, loss payee, etc.). If the ownership interest in a horse changes at any time during the policy period, you need to notify your agent.

A few examples of changes in ownership include adding a co-owner, changing the ownership from an individual’s name to an LLC, or leasing your horse. The insurance carrier requires notification of any ownership changes at the time of the change or lease.

What happens if my horse is stolen or needs to be put down?

In the event of your horse’s theft or death, report the loss immediately to your insurance carrier. In cases of theft or vehicular involvement, such as a car accident, contact the police. Do not have your horse euthanized without authorization from your insurance carrier. If your horse is found deceased, report the death immediately. A necropsy will likely be required if the horse is euthanized or is found deceased. It is important to advise your horse’s caretaker of these loss notification procedures.

This article about horse insurance is a web exclusive for Horse Illustrated magazine. Click here to subscribe!

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Because virtually every aspect of horse ownership carries some degree of risk, horse owners should consider the possibility that things can sometimes go wrong and lead to legal issues. In most common cases, the horse does not present the only risk: People who will be interacting with him can cause a multitude of problems, which in a worst-case scenario can land you in court as a horse owner.

Our generally optimistic outlook on life with horses is not often eroded by a fear of being sued. Most of us never expect it from loved ones or horsey friends, yet this precise situation happens with some frequency.

A myriad of hazardous situations involving horses can result in a lawsuit, most too complicated to resolve without an experienced attorney. Yet we offer horseback rides to family members, casually board horses on our properties for extra income, and lend our trailers to friends.

The following should not constitute legal advice—always consult an attorney for that—but these five topics are designed to give you an idea of the common areas of conflict that crop up in horse legal issues and court cases.

1. Buying and Selling

Far too many horse buyers are more emotional than careful when buying a horse, and thus they are amazingly cavalier about documenting the transaction. They fall in love with a horse, sometimes by merely looking at it online, and purchase it sight unseen.

Most buyers and sellers jot a few words on paper about the exchange of money and consider that sufficient to change ownership. It may be for some, but protection in a dispute about ownership is better ensured with a detailed and thorough contract that you can easily find if needed.

If presenting a contract—or signing one already drawn up—seems beyond the needs of the average horse owner, consider how many horse buyers wait for registration papers that never arrive, take possession of an injured horse upon delivery, or discover their new performance horse has a periodic lameness issue related to a previous case of laminitis that the seller neglected to disclose.

Sometimes the seller insists on a “right of first refusal” (see below), yet the buyer sells the horse without informing the former owner. What is the recourse when a sale is made on a proverbial handshake deal?

If hiring an attorney to draw up the specifics of a sale seems like overkill, at least consider using one of the many online equine sales contracts that provide a good starting point for buyers and sellers. Specific details or modifications can be added by either party to strengthen its viability, should a dispute arise.

2. Boarding

Most boarding stable owners are careful enough to require signed documentation from boarders limiting the business’s risk of liability in the event of an accident involving a boarder or their horse. That document typically outlines the rules established by the stable for everything from turning off arena lights to requiring all one-day riders or those test-riding a horse for possible purchase to sign a legal liability waiver.

High-profile boarding stable owners don’t rely on loosely worded boarding contracts with one-size-fits-all contractual language, because they know the cost of an attorney is minuscule compared to a judgment against them in a personal injury lawsuit.

More casual horse boarding operations would be wise to follow suit. Non-paying boarders or those routinely late with payments often present a problem that ends up with the horse as the only bargaining chip. In these situations, frustrated stable owners sometimes overstep legal boundaries.

“Declaring the stable to be the owner of the horse and selling it without following the law or putting the horse in the stable’s lesson program may not be legal,” says Julie Fershtman, a national trial lawyer, legal consultant, and author of two award-winning editions of Equine Law and Horse Sense. Fershtman is widely considered one of the top equine attorneys in the U.S.

“Stable owners of all types and sizes should be aware of their state agister’s lien statutes that give them a security interest in the horse that allows them to enforce the lien after a specified period of time has passed and the stable has performed specific procedures,” she says.

Boarding contracts typically include the Equine Liability Law for the state, and stable owners are also required in many states to post signs in the most visible barn areas to remind everyone of the inherent risk associated with horse activities. Copies of equine activity liability releases (sometimes referred to as waivers) should be on-site, signed and dated by non-boarders.

Some horse owners mistakenly believe equine liability waivers are not successfully defended in court, when the reverse is true. Even so, an equine liability release does not guarantee the stable cannot be held liable for any accident. For instance, a lawsuit can be brought by a boarder who can prove the stable owner has been negligent by failing to perform reasonable measures to protect the safety of boarders and their horses.

“Many in the horse industry misunderstand equine activity liability laws, currently found in 48 states, and wrongly assume that these are ‘zero liability’ laws,” says Fershtman.

“That is not true. Although many of these laws limit the basis for a claim or lawsuit, they typically allow for the possibility of certain types of claims to be brought.”

Horse owners sometimes view boarding contracts as routine paperwork that protects the rights of the stable owner, yet these signed agreements are often relied upon by both parties when a dispute arises.

3. Leasing or Share Boarding

While an arrangement for leasing a horse can be a win-win for both parties, the best way to make sure everyone is on the same page is to write down the terms, fees and exclusions, and require each party to read and sign the contract. Without a written reminder, the lessee may believe her payments are for the purchase of the horse rather than its temporary use.

That’s merely one of many disagreements that can arise when time passes and memories fail. A written contract can include standard terms, such as duration of the lease, payment schedule, which days are assigned to each rider, and who is authorized to ride the horse.

More detailed contracts can define liability issues, who is responsible for veterinary and farrier care, and whether the lessee has the option to buy the horse during or at the end of the lease. The more specific the contract, the greater the chance of a positive outcome.

4. Trailering

When you own a horse trailer, you can count on someone eventually asking to borrow it, use it in an emergency, or asking you to transport a horse in your trailer for a fee.

In these situations, you need to be aware of what your insurance policy will or will not cover. Those who assume their homeowner’s policy or car insurance will pay an accident claim involving a horse trailer and someone else’s property can live to regret it.

For example, a policy may cover personal use of your truck and trailer, yet consider you a commercial entity if you were paid to transport someone else’s horse. Unfortunately, insurance companies look for holes in your policy that allow them to deny claims. This is why policy holders never want to hear their insurance agent say, “read the fine print” after something goes wrong.

5. Insurance

Commercial horse businesses generally carry extensive insurance because their liability is multiplied by buildings, equipment, employees, boarders and visitors. Always know what your insurance specifically covers before you need it.

Trainers and riding instructors should be especially careful since they are on the “front lines” with more hands-on responsibility for clients and horses. Many carry umbrella policies that cover general liability insurance plus added coverage for care, custody, and control of their clients’ horses. The facility where training and riding instruction is conducted does not typically carry coverage that indemnifies trainers and riding instructors.

Horse owners and those in the horse industry shouldn’t live in continual fear of being sued, but we do live in a litigious society. Covering all bases with solid, detailed contracts, hiring a lawyer to handle complicated but common legal issues, and buying insurance specific to your horse activities is the best way to protect your assets.

This article about common legal issues in the horse world appeared in the May 2022 issue of Horse Illustrated magazine. Click here to subscribe!

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Owning a horse can be expensive. Beyond the initial purchase price, other fees such as board, training, and showing fees can add up. A horse that becomes seriously ill or injured can cost you a fortune in veterinary bills. Should the worst happen and your horse dies, not only will you be emotionally devastated, but you will have lost your financial investment and be without the funds to buy another horse.

One way to protect your horse, and your pocketbook, is to purchase equine insurance. The right plan will help you control costs if your horse requires unforeseen medical care and will reimburse you for his value if he dies. Having equine insurance offers you peace of mind knowing that if something happens to your horse you can work on getting him the appropriate treatment and not worry so much about budgeting for large vet bills.

Getting Started

To find an equine insurance agency, ask your trainer, veterinarian, or a horse friend to recommend some options or do some research online. Be sure to call a few different companies to see which sounds like the best fit for you. Equine insurance policies are customizable, so the agent will go over each type of coverage available, explain different options, and give you a quote.

Base policies begin with full-mortality insurance, which is essentially life insurance for your horse. This reimburses you the insured value of your horse in the event of death due to any cause, but it also includes theft and has provisions for humane destruction.

Many owners choose to add major medical to their full-mortality base policy, which covers non-routine veterinary expenses up to a specified limit. This can include such costs as diagnostic procedures, surgery, medication, and veterinary exams associated with an illness or injury. It can be useful in a situation where your horse becomes ill and needs to go to a clinic for a few days, or if he becomes lame and requires advanced diagnostics or regenerative care. If you don’t want to purchase a full major medical program, you can choose pared-down medical coverage instead, such as medical assistance, a surgery-only policy, or a colic treatment and surgery option.

It is important to know that policies are reviewed for renewal by the insurance company’s underwriters each year to advise coverage options for the upcoming year. For example, if your horse colics and needs surgery, the policy may not cover colic when it is renewed the following year.

Common Equine Insurance Questions

It’s important to ask your insurance agent questions about the policy ahead of time so that you have a clear understanding of what’s included. Here are a few questions that many owners have when purchasing policies for their horse.

How do you determine insured value?

First, you start with the horse’s purchase price. You can include any sales commissions as well. If you have owned the horse for a while, you may be able to insure it for a value higher than the purchase price. The agency will submit competition records, along with the value you intend to insure for, to the insurance carrier. This information helps the carrier to decide whether or not to approve that proposed value. For young horses, you can also include training fees as justification for the horse’s value.

At what age can you insure a horse?

You can begin insuring a horse at 24 hours of age. The rate to insure a horse from 24 hours of age to 30 days is higher, so if you start that young, you will pay a little bit more. If you wait until the foal is 31 days, it’s less expensive. The rate goes down each year until the horse is two years old, and then he can be insured at the standard rating for his use, like as a hunter or jumper.

A horse can have full mortality and medical coverage through age 20, though the rate for the full mortality increases each year after age 16. Sometimes, a customer will decide to reduce the value, so they’ll keep their premium close to the same, but they can continue to insure and get medical coverage.

How expensive is equine insurance?

Insurance premiums are based on your horse’s age, use, and value of your horse. As mentioned above, as your horse gets older (over 16), the rates go up. However, for ages 2 through 15, most carriers will write the standard rating.

Because you can customize your policy, you may choose to insure your horse for a value less than his current market value. You can come up with an amount that fits into your budget. For example, say your horse is valued at more than $30,000, but when you get the premium quote, you decide you’re more comfortable paying the rate for a value of $25,000. You can still get the major medical add-on, and if he were to die, you can still recoup a good portion of your investment.

Buying a policy for your horse is different than buying any other type of insurance policy because you’re so attached to the animal. It can be an emotional process for you if your horse becomes ill or injured, or worst-case scenario, dies. Being able to have an open and honest dialogue with an experienced agent that you feel comfortable with is an important factor in making sure you have all the answers you need.

Further Reading

• Six Types of Equine Insurance
• About Horse Riding Insurance
• How to Budget for Vet Bills

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One way to help protect your horse and your pocketbook is to purchase equine insurance. The right plan will help diffuse costs if your horse becomes sick and will reimburse you for his value if your horse passes away or is stolen. You can also purchase insurance to help with liability issues relating to your horse—for instance, if someone is injured while riding or handling him, or if he damages a neighbor’s property—as well as insurance that will cover you if your horse becomes unable to perform the job you bought him to do.

Let’s take a look at the various types of equine insurance available to horse owners:

1. Major medical.

The first type of equine insurance is major medical. If you have a major medical insurance policy for yourself, you automatically have a basic understanding of how it works for horses. Equine medical insurance covers veterinary costs such as diagnostic procedures, surgery, medication and veterinary visits associated with an illness or injury.

Most policies have a deductible for each incident, and all have a limit on the amount the policy will cover per incident and per horse per year.

These policies are reviewed for renewal by the insurance company’s underwriters each year and are subject to exclusions. For example, if your horse colics and needs surgery, and your insurance company pays a portion of your vet bill, the policy may not cover colic when it’s renewed the following year.

Some insurance companies require a veterinary health certificate as proof that your horse has no pre-existing conditions before you take out the policy; anything related to these conditions will be excluded from the policy. All insurance companies have limits on age, too.

Although it varies by company, if your horse is age 15 or older, you’ll have a tough time finding major medical insurance that will cover him.

2. Surgical

The second type of equine insurance is surgical. Unlike major medical policies, which cover all types of veterinary costs, surgical policies only come into play if your horse needs an operation.

They cover expenses directly related to the surgery, such as the surgeon’s fee and the price of the anesthetic used on the horse during the procedure. They don’t cover the cost of the hospital stay before and after the procedure, which can be a large part of the bill. However, if major medical insurance is out of your price range, surgical is the next best thing—and better than no insurance at all.

3. Full mortality

The next type of equine insurance is full mortality. When you take out a major medical or surgical policy on your horse, insurance companies also require that you purchase full mortality insurance (and vice versa) to make sure that you will do everything possible to save your horse. Should your horse die from an illness or accident, or if he is stolen and not recovered, full mortality insurance will reimburse you the previously stated value of the horse, determined at the time your horse is insured.

Keep in mind that if your horse is older than 15, you may have trouble finding full mortality coverage.

4. Limited mortality

If your horse dies as a result of an accident or another specified cause, limited mortality insurance will reimburse you the value of the horse. You don’t need to have a medical or surgical policy in place in order to purchase this type of insurance.

Most people who purchase limited mortality insurance do so because they have special circumstances that place their horse at risk of an accident. If you are shipping your horse cross-country, for example, you may want to purchase a limited mortality policy. If your horse happens to die in a trailer accident during shipping, the insurance company will pay you the declared value of the horse.

5. Loss of use

Loss of use insurance protects you if your horse is injured or becomes ill to the point where he can no longer do what you bought him for—usually riding. The insurance company pays out a predetermined sum, which is based on an amount of money agreed to by both you and the company. You also need to carry major medical insurance when you take out a loss of use policy.

Although loss of use insurance sounds like a good idea, it can be very difficult to collect on these policies because it’s not easy to prove to the insurance company that a horse is no longer useful for its specified purpose. Some policies also require that the owner euthanize the horse or turn it over to the insurance company in order to collect.

6. Personal liability

The last type of equine insurance is personal liability. Similar to the liability coverage in a homeowner’s policy, personal liability insurance protects you in the event your horse injures someone or damages property.

Many people find this type of insurance provides peace of mind, especially if their horses spend time around a lot of different people. Before you purchase this type of insurance, make sure your homeowner’s policy doesn’t already include this kind of coverage.

Getting Started with Different Types of Equine Insurance

The price of insurance for your horse depends on several factors, including where you live, the declared value of your horse and the type of coverage you buy. Major medical and mortality insurance typically cost anywhere from $400 to $800 a year, depending on the value of the horse, the deductibles you choose and the payout cap.

The best way to find a good equine insurer is to ask your veterinarian for a reference. Vets often deal with equine insurance companies and know which ones pay out the quickest and most often. Other horse owners are also good resources for insurance companies. Ask your horse friends and professionals in the industry who they recommend. You can look at ads in horse publications, and do a search for “equine insurance” on the Internet as well.

Make sure the insurance company you choose is underwritten by a legitimate carrier. Ask the insurance agent a lot of questions about the policy and the company that backs it before you sign up:

• How much is my annual premium?
• Does the policy have any exclusions?
• What is the deductible on the policy?
• What is the percentage that will be paid for each claim I file?
• Which company underwrites the policy?
• How long has that company been in business? (You want the answer to indicate that the company has been around for at least 10 years.)

Understanding all of the equine insurance policies available can help you decide which, if any, are suitable for you and your horse.

This article originally appeared in the 2009 issue of Horses USA.

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