Equine Insurance Made Simple: A Beginner's Guide from Coverage to Claims

Have you ever wondered if you need insurance for your equine partner? Do you know what equine insurance covers and, perhaps even more important, what it doesn’t cover? Keep reading to get an overview of equine insurance and what to consider when deciding what kind of policy to purchase. 
Before contacting an insurance company for a quote, you need to determine your current insurance needs. At the top of the list of things to consider is the replacement cost of your horse, which means what would it cost to buy a similar quality horse with the same level of training and experience. Additionally, you want to consider if you need coverage for personal liability, medical, surgical, breeding infertility, or loss of use.
There are several types of insurance policies available. These include full mortality, limited mortality, major medical, surgical, loss of use, breeding infertility, specified perils, and personal liability insurance. Below is a brief description of what each policy is usually designed to cover.

• Full mortality: This type of policy will pay out the insured value of your horse if it dies. These policies pay if the horse dies due to an accident, injury, veterinary recommended euthanasia, illness, and usually theft. Most insurance companies will require a major medical policy in addition to the mortality policy.
• Limited mortality: This policy will pay out the insured value of the horse in limited circumstances, most likely accidental death. Usually, these policies do not require additional major medical or surgical policies.
• Major medical: This is health insurance for your horse. It will not cover routine, annual veterinarian care. This is meant for unexpected illness/injury, diagnostics, medications, and surgery. There is usually a per incident deductible as well as a maximum payout per year for each horse. This policy is usually required to get a full mortality policy on your horse.
• Surgical: This is a cost-effective alternative to a major medical policy. This policy will cover fees directly related to surgery, such as colic surgery. It will not cover any diagnostics, follow-up care or stays at the equine hospital.
• Loss of use: If you have a high-end performance horse with a very specific use or purpose, this policy will pay out a percentage of the horse’s value in the event of a non-fatal illness, injury, or accident.
• Breeding Infertility: This is a specific policy for stallions and mares that experience reproductive failure.
• Specified Perils: This policy is specific to things such as lightning, fire or transport.
• Personal Liability: Liability coverage is protection if you are sued by a third party who is injured or whose property is damaged by your horse. This policy usually covers legal fees and pays claims for which you are legally liable up to the policy limits.

Once you have an idea of what your insurance needs may be, it is time to contact an equine insurance agent. Just like insurance for your health, home, life or car, an insurance agent can assist you with finding the best policy for your situation and budget. Be sure to ask lots of questions and read the policy coverage terms, conditions and exclusions carefully. If something is very important to you, such as colic surgery coverage, personal liability, or loss of use, ask your agent to give you options with those types of coverage first. Your budget may not allow for multiple types of coverage. Be prepared to prioritize your needs when you are shopping for a policy. Speaking of shopping, be sure to get multiple quotes so you are certain you are getting the best coverage in your budget.
While reviewing policies and coverage, take a close look at the requirements to obtain coverage. You may need to get a veterinary exam prior to getting coverage. Be prepared to pay for the exam and any related tests. The claims process and interaction between you, your vet and the insurance company should be reviewed carefully as well. The specific guidelines that you must adhere to during a medical emergency, or potential claim situation, can be very strict, so be sure to understand the process very clearly. Sometimes the insurance company may require you to do things that are not in the best interest of the horse, such as have you do a surgery you wouldn’t do. You may also have to wait for approval to euthanize. The downside to traditional equine insurance policies is that you may have to wait for approval to make hard decisions.
What if your horse has a pre-existing condition or is too old to qualify for an insurance policy? What if you have a small budget for insurance and simply can’t afford the premium? Self-insuring is a great option. Some individuals decide that it is better to set aside a set amount each month or year to cover large vet bills and/or replacement cost of the horse. The usual amount to set aside is the annual premium for the policy you are considering but can be whatever you can afford to put aside. Most people open a separate bank account, so it is available to use when needed. This option gives you the most control as far as how much you set aside, and what medical or emergency care options you decide to utilize. You also have instant access to the funds rather than waiting for the claims process.
Although it isn’t pleasant to think of your horse’s death, illness, or injury, it is a necessary consideration that comes with horse ownership or leasing. Most leases or payment contracts require you to have insurance on the horse while it is in your care until the contract is paid in full. Self-insuring would most likely not be an option. Whether you get a traditional equine insurance policy or decide to self-insure, there is peace of mind knowing that you have a safety net just in case.