SOME FREQUENTLY ASKED QUESTIONS ON HORSE INSURANCE

In our travels around the country visiting farms and shows, we at Segundo, Inc. get several questions asked with a lot of frequency. Some of these would include:

If my horse hurts somebody, doesn't my Homeowners Liability insurance cover me?
It may not. Most Homeowner and many Farmowner policies exclude liability for Livestock. Pets such as dogs and cats are generally included, but horses are in most cases considered Livestock and you may not be covered for an injury or property damage caused by your horse. Specialty insurance companies offer this insurance under Personal Horse Owners Liability and Commercial Horse Liability coverages. It is available as a standalone policy, or in conjunction with an Equine Farmowners package policy. Considering the damage that can be done, often just by accident, by any animal as large and powerful as a horse, it would be advisable for any horse owner to look into this type of insurance.

What does Horse Mortality Insurance Cost?
Annual policies are available to protect your investment in your horse(s). These are usually referred to as Full Mortality Insurance and would provide payment in the event the insured horse died from accident, sickness or disease, or would need to be destroyed for Humane Reasons during the policy period. The cost of this insurance is usually expressed as a percentage of the insured value of the horse, and generally runs between a low of 2.5% ($25 per $1,000 of coverage) to 4.5% or higher. The rates applied vary according to the Breed, the Age, Value and the Use of the horse insured. The basic policy can be enhanced with optional, extracost coverages such as Major Medical Insurance, Surgical Insurance, Stallion Infertility Insurance and others.

If I train horses as a hobby or as a full time occupation, am I eligible for Disability Insurance?
While disability insurance has not always been available for Horse Trainers, there a now a few companies that do offer this protection. You may have to look or call around around for it, but it is available in most instances.

If I have a Horse Show or Clinic on my property, am I covered by my Liability Insurance?
Probably not, unless you have specifically requested this be added to your policy and have paid an additional premium. If you are allowing a horse organization to use your property, you can request evidence of their Liability Insurance and request to be added to their policy as an Additional Insured. Daily Equine Event policies are available to cover these kinds of functions, or the horse organization may have an annual Liability policy to cover all their various shows and events and can provide you with evidence of their insurance.

What should I ask my insurance agent or insurance company to make sure I'm covered?
If you own a horse, or horses it would be advisable to specifically ask your insurance agent if you have coverage in the event your horse(s) cause bodily injury or property damage to any third party either while on your property or away from your property. If you take your horse to shows or trail rides or send mare out to be bred, you'll want your insurance protection to go as far as the horse does. If you wish to protect your investment in your horse(s) so that you can be financially able to replace the horse if he/she dies, you'll need to ask your agent for Horse Mortality Insurance. This is a specialty insurance product and is only available from a small number of insurance companies through selected agencies. If your agent does not offer this insurance, ask if he can get it for you. Or, you can find an Equine Mortality Insurance Agent by asking friends in the horse business, or perhaps through your Breed Club or Association. If you own horses and a farm, be sure that your insurance companies knows what horse related activities you have on your farm, and be sure you have coverage offpremises if you take your horses to shows, trail rides, etc. If you do any Training, or give any Riding Lessons, you need to consider Equine Commercial Liability coverage to be properly insured. Horses are a great source of joy and relaxation for a great number of people. Please make sure you have the proper insurance coverage to protect you financially against the unforeseen that can happen to anyone.

Happy Trails and best regards from,
Jim Brown
Ed & Marcella Hampp
Segundo, Inc.

return to archives