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!

The post Equine Insurance Policies appeared first on Horse Illustrated Magazine.

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!

The post Your Horse Insurance FAQs appeared first on Horse Illustrated Magazine.

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!

The post Common Legal Issues in the Horse World appeared first on Horse Illustrated Magazine.

“Our chief executive officer, William Moroney, recognized that many of our members needed access to affordable health insurance coverage,” says Kelly Bolton, Human Resources Director at U.S. Equestrian. “We then began strategic planning to make member health benefits a top priority, and spent 2019 furiously working on this initiative, which we announced at our annual meeting in January 2020.”

At deeply discounted rates that are typically only given to large employers, these health insurance benefits are affordable and comprehensive. “As a member of U.S. Equestrian, our members can utilize our health insurance plans at significantly reduced rates compared to what they would pay purchasing their own direct plan,” Bolton says. “All of our plans are built for equine professionals, so there are no exclusions for athlete riders, or accidents, that would normally preclude our members from being insurable.”

U.S. Equestrian partnered with top health-care providers to provide an insurance opportunity to U.S. Equestrian members, including ones who may be self-employed or have no other access to benefits. All insurance services are individual or group plans, so a member can purchase only what they need, or use the group plans for their businesses, which ensures cost savings and flexibility, explains Bolton. The plans are also guaranteed issue and compliant with the Affordable Care Act.

U.S. Equestrian has also added customized options for individual and business needs, such as medical, accident, critical illness coverage, mental health first aid, hospital, short- and long-term disability, dental, vision, and even group plans for small businesses with two or more employees.

Additionally, Teladoc insurance provides members with the option to have consultations with licensed physicians by either phone or video chat, eliminating the need to travel to a doctor’s office. This standalone service covers the member and all of their household dependents. Individuals can purchase Teladoc insurance for a flat rate of $8.95 per month.

U.S. Equestrian members can also purchase MASA Medical Transportation Air Ambulance Insurance for only $39.00 a month. Legal and financial protection and pet insurance options are also available. In addition, the free mental health first aid package allows members to reach a counselor 24-hours a day for three free counseling sessions.

There are several bundling options that can save members additional money, says Bolton. “For example, if a member purchases an individual medical plan, then telemedicine and medical air ambulance insurance is included in their plan at no additional cost and does not need to be purchased separately,” she adds.

U.S. Equestrian paid members, both fan and competing, can now take advantage of these benefits with discounts of up to 35% off of market prices. On top of that, U.S. Equestrian is currently offering a discount on fan memberships, which unlocks a one-year membership for just $20. Interested individuals can use the promo code “RELIEF” to unlock the discount.

In addition, U.S. Equestrian is continuing to offer its million-dollar Excess Personal Liability Insurance Policy, including the death and disability benefit, from Equisure for only $25 per year.

More benefit options will be added in the coming months for U.S. Equestrian members. Call center representatives can help members review and select the U.S. Equestrian health insurance benefits and coverage options that best meet their needs and benefit them financially. Call the U.S. Equestrian Member Benefits Hotline at (800) 349-1082.

To learn more, visit www.USEF.org/insurance.

The post U.S. Equestrian Offers New Health Insurance Benefits to Members appeared first on Horse Illustrated Magazine.

Finding the perfect liability insurance for your horse farm or equine operation can seem overwhelming, but being under-insured can be even scarier: The thought of losing your farm, your home, your horses and most of your assets is enough to make any horse owner quiver in their muck boots.

There are a variety of options available, but which one is right for you?

But Who Needs Liability Insurance?

Sadly, in the litigious world we now live in, having liability insurance is more than just peace of mind–it can be key to protecting yourself and your assets should you be brought to court.

One important item of importance, says Kristin Detwiler, an agribusiness and equine specialist with Gibson Agri & Equine Insurance in Girard, Ohio, is to make sure you’re working with someone who truly understands the equine operation and what needs to be covered. For example, some homeowners insurance policies will cover the liability for a few horses kept in the backyard, but will not cover a large farm with boarded horses on the property—these people would need a different policy: a farmowners insurance policy.

The easiest way to tell what type of insurance you need is to ask yourself this question: Is someone charging for services at this operation? If they are, this becomes a “commercial” exposure and a commercial farm policy would be needed, as opposed to a personal policy.

Insurance Options

There are many different types of liability insurance, but agribusiness and farmowners policies are typically the ones that are used to cover a farm property and the liability that comes with it, notes Detwiler. Each liability policy is then tailored to the individual based on their needs and their operations.

For example, the liability insurance a boarding barn owner carries will be different from that carried by a trainer who travels to various farms to give lessons, but insurance is necessary for both. What differs for each is what is specifically covered under each policy.

The most popular liability insurance options for those involved in the equine industry are Equine Personal Liability and Equine Professional Liability.

• • EQUINE PERSONAL LIABILITY

    Generally speaking, for someone who just owns a few pleasure horses in their backyard, equine personal liability would be a good fit, explains Detwiler. This type of policy would include coverage for things like damage to another person or to another person’s property. Equine personal liability insurance also covers episodes like a horse getting into the road and then getting hit by a car, damaging the car or injuring the people in the car.

  • EQUINE PROFESSIONAL LIABILITY

    A more-specific policy targeted to professionals in the equine industry, an equine professional liability policy covers trainers and instructors who may not own the facility from which they provide their services.

  • COMMERCIAL FARM OWNERS PACKAGE

    When dealing with equestrian professionals who give riding lessons, board, breed, train, offer clinics, riding camps or something similar, a Commercial Farm Owners Package would be a better fit as it could cover all these endeavors. A specific policy would again be tailored to the individual, farm or corporation to cover all of the exposures from their equestrian involvement.

    This Package insurance policy is the most comprehensive (and often the most affordable) way to cover the entire exposure of the farm from lawsuits against the farm owner—and it’s done on one policy, says Detwiler.

    This policy would cover the actual farm property itself (dwellings, barns, machinery, hay and animals) and provide liability insurance. This liability can include liability for boarding, breeding, training, lessons, clinics and more.

• PERSONAL LIABILITY POLICY

  That being said, stand-alone equine personal liability policies for horse owners who do not own their own farm and aren’t covering their liability on a farmowners policy are also available. This type of insurance is best suited for horse owners who board or lease a horse that is not housed on property they own.

  Some homeowners insurance policies will cover the liability from owning a horse, but some will not, so it’s worthwhile to call your current carrier to see if they would extend liability to one owned horse, explains Detwiler.

  If your current insurance carrier doesn’t extend coverage, consider adding equine personal liability insurance. These policies are generally very reasonably priced. This type of policy would provide liability insurance for the horse named in the policy, no matter where it goes. For example, if you were to take your horse to a horse show and the horse bit someone who then tried to sue you, this insurance policy would protect you and your assets.

What is NOT Covered With an Equine Insurance Policy

While there is no “blanket” insurance policy, it’s important that any farm with commercial exposure (such as boarding, riding lessons, training, etc.) has liability release waivers and hold harmless agreements, which can be drawn up or reviewed by a lawyer. It’s also important that each farm abide by state-specific equine laws, which could include the posting of equine activity awareness signs.

“Insurance agencies do not provide such documents,” notes Detwiler. “It is advised that a person meet with an attorney to draft up such paperwork as it will pertain to them and their farm specifically. In writing a commercial farm policy or general liability policy, these waivers are typically required to be used and copies must be sent to the insurance company prior to beginning coverage.”

Insurance in a Nutshell

“If someone owns their own farm, a good catch-all insurance would be an actual farmowners policy,” explains Detwiler. “This policy would cover all of the property and the liability based on the liability exposure on the farm itself. For someone who might not own their farm, but is leasing or travels to different barns to give lessons, is doing some boarding, breeding, clinics, or other equine endeavor, a Commercial General Liability policy with equine personal liability and professional liability along with any of the other exposure coverages would be a good catch all.” You could never cover everything on one policy and it can be changed as the exposures change, she notes.

Keeping this in mind, once you have insurance, you should plan to go over your policy each year with your agent when the renewals come due. A lot can change over the course of a year, and you might not think to call your agent every time you offer a new service or hire new employees, but it’s imperative that he or she know exactly what is being done on the farm to make sure you’re protected to the very best of the insurance company’s abilities.

It boils down to this: No matter how you are involved in the equine industry, you need to have liability insurance—it depends on what you are doing with the horses that will determine what type of coverage you will need.

Sarah Coleman has a soft spot for chestnuts
with chrome, including her off-the-track Thoroughbred that she competes
in the hunters. Based in Lexington, Ky., she is the Director of
Education and Development for New Vocations Racehorse Adoption Program. 

The post Liability Insurance for Your Horse Farm appeared first on Horse Illustrated Magazine.