Welcome to Broadstone Equine Insurance
FAQ'S FOR HORSE OWNERS
If you own a horse, there are several types of insurance coverages to consider. These frequently asked questions will help you choose a policy that fits your needs.
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Q: At what ages can I insure my horses?
A: Full Mortality Coverage: Horses over 24 hours old through 18 years or older, depending on the insurance company.
Major Medical / Surgical: Horses over 31 days through 18-20 years old, depending on the insurance company.
Surgical Only: Horses over 31 days 20 years of age, depending on the insurance company.
Extended Named Perils: Horses over 24 hours old
Q: Are there any uses/disciplines which do not qualify for coverage?
A: Race horses, horses in race training, or horses intended to race do not qualify for Major Medical/Surgical, Surgical Only, or Loss of Use coverages. Your horse’s use and level, and any intended uses during the policy period must be stated on the mortality application.
Q: Is my horse insured when we drive to another state?
A: Yes, coverage is in force while your horse is traveling by land or air throughout the continental U.S. and Canada.
Q: What if I’m buying a horse that’s in another country, or I'm traveling with him out of the U.S. for a competition? Will he have coverage while we are abroad and in transit?
A: Full Mortality and Major Medical/Surgical or Surgical Only coverage can usually be extended while the horse is located in most other countries--depending on the company you are looking to place the coverage with. Some companies will extend just the Mortality coverage, while others will also include the Major Medical/Surgical or Surgical Only endorsement. The insurance company will require is prior notice as well as an additional premium, as well as details on the flight (dates, locations, transport company, flight numbers, etc.)-- but underwriting approval must be obtained before any coverage is in place. Quarantine expenditures are not covered. Ask the agent for more details. NOTE: If the insurance company is not notified of the horse's international travels and approves the extension of coverage through endorsement, absolutely no coverage will be provided.
Q: Can I get Major Medical/Surgical, Surgical Only, or Loss of Use coverages by themselves?
A: No. These coverages are only available as endorsements added on to a Full Mortality policy.
Q: Do I need to have my veterinarian examine my horse before I can start a policy?
A: To insure for Full Mortality, with most companies a veterinary exam is usually not required as long as your horse is age 15 or under, sound and healthy, and you are insuring him for $50,000 or less. If you are insuring for more than $50,000, a basic exam is usually required.
If you are interested in Loss of Use coverage, regardless of the horse's value, you will be required to submit at least a basic veterinary certificate, and depending on the type of Loss of Use coverage you are interested in, you may need very detailed veterinary exam (similar to a pre-purchase exam).
Q: Can I start coverage today?
A: We can bind coverage upon receipt of underwriting approval, which generally can be the same day we receive all the required paperwork if it is during business hours, Monday through Friday, and all paperwork is in order. Paperwork can be submitted by fax, email or mail. Providing we receive underwriting approval, we would then email and mail you an insurance binder that would give you approximately two weeks to make payment.
Q: What are my payment options?
A: If making payment to our office, you can pay by personal check, money order, Visa, MasterCard, or Discover. Payment options directly to the insurance companies vary.
Q: Will I need to provide a new veterinary exam when I renew my horse's policy?
A: As long as your horse is sound and healthy with no claims during the policy year, under 16 years old, and his insured value is $50,000 or less, you should generally not have to provide a vet certificate at renewal. You will usually need (depending on the company you are insured with) a current vet certificate if the horse will be insured for more than $50,000. Also, the underwriters may ask for a veterinary certificate due to advanced age of the horse (16 or older) or if the horse has experienced health issues during the policy period.
Q: I just purchased a new horse. How much can I insure him for?
A: You can insure your horse for his fair market value or any lesser amount. Fair market value would be the amount you could expect to receive if you sold your horse right now, therefore, with a recently purchased horse, the purchase price would be considered fair market value.
Q: I purchased my horse several years ago, and he's definitely increased in value due to training and competition. How much can I insure him for?
A: As above, you can insure him for his fair market value. In this case, since it would be more than his purchase price, you would need to provide substantiation for the increase in value. You can use the Justification of Value form (on the Forms and Applications page) which will help you list the horse's competition record, professional training fees paid, and other relevant information. This information is normally sufficient, providing the underwriters feel the value you are requesting is reasonable. Give us a call and we'll help you determine what you'll need and we will then submit it to underwriting for their review.
Justification of Value Application: value_just.pdf
Q: My horse is a three-year-old homebred with no performance record yet. How do I determine his value?
A: The basic formula used for homebred horses is three times their sire's stud fee. If you believe your horse is worth more than that due to training, performance, etc., contact our office and we can discuss this with you in detail.
Q: I'm most worried about being able to pay the vet bills if my horse becomes ill or has an injury. What types of coverages are available?
A: If your horse is from the age of 31 days and 18 years, you should seriously consider adding Major Medical/Surgical coverage to your mortality policy. This coverage will reimburse you for covered veterinary costs (both medical and surgical) in the event your horse has a covered injury, illness, accident or disease.
Remember, while your mortality policy provides coverage for humane destruction, it does not cover economic destruction. If your horse develops a serious condition that requires costly medical or surgical care, and the veterinarians believe that treatment is warranted, you are expected under the terms of the mortality policy to provide for that care. If you don't have the funds to pay the expected veterinary fees, and instead choose to put your horse down, the mortality coverage would likely not apply.
Q: What if my horse has a health problem during the policy? Will I be able to renew the policy?
A: Most often the company will offer to renew your policy, but may apply an exclusion for that specific problem if they deem it necessary and/or may apply a debited rate for coveage, or restrict access to certain coverages.
Q: If I board my horse, isn't he covered by the people that own and manage the barn?
A: No. The only coverage that might apply would be if the people operating the boarding business have Care, Custody & Control (CCC) coverage, which is a liability coverage meant to protect them in the event a client's horse in their care is injured or killed, and the client feels it was due to their negligence and sues them. CCC does not protect you as the horse's owner, therefore, a Full Mortality policy with Major Medical/Surgical coverage is definitely a good idea.
Q: How does Loss of Use coverage work?
A: Loss of Use helps to reimburse you for a percentage of your horse's insured value in the event he is permanently unable to perform his insured use.
Loss of Use is only available for performance horses, not breeding or pleasure horses, and even then, is only available for some disciplines. This coverage is relatively complex. Contact our office and we will give you all the details.
Q: Is there any type of infertility coverage for my breeding stallion?
A: Yes. Stallion Accident, Sickness and Disease coverage can be added to your proven stallion's mortality policy. It will reimburse you for a percentage of his insured value in the event he permanently can no longer get mares in foal as the result of an accident, sickness, or disease.
FAQ'S FOR BUSINESSES
Equestrian Commercial General Liability including Care, Custody & Control, Applications:
Horse Show Coverage Application:
Riding Clubs and Associations Application:
Q: I board horses at my farm, but I don't teach lessons. Several independent instructors and trainers do come onto the premises to work with their clients, who board here. Do I need liability coverage for this, and if so, what type?
A: Even though you are not actually performing the teaching or training, you should still make sure your liability policy includes coverage for these exposures, since they are taking place on your property. If there is an accident during these activities, even if you are not at all involved, you could still be sued along with the instructor or trainer. You should be able to add coverage for these exposures to your liability policy that covers your boarding. If you don't have any liability coverage in place at all, you should definitely consider it for any equine activities that take place on your property.
You should also insist that the instructors and trainers who utilize your facility have their own liability coverage with limits equal to or greater than your policy's limits, and that you be named as an Additional Insured on their policy. You should make sure to request a copy of a certificate of insurance that shows that this is the case.
Q: What is an additional insured?
A: An additional insured is a person or entity who has an insurable interest in the insured's activities and is therefore added to their policy--which gives them rights under that policy in the event they are sued due to the insured person's activities. There may be a cost to add an additional insured to a policy, though it is usually nominal.
Q: I teach riding lessons and train horses, but don't have my own facility--I travel to my clients. What kind of coverage should I have?
A: You can purchase a Commercial Equine Liability policy that will follow you wherever you teach or train.
Q: I have my clients sign a release of liability. Shouldn't this prevent them from suing me?
A: It is definitely a good idea to have clients read and sign a release of liability (one that you've hopefully had reviewed by an attorney), and the insurance company requires it. Unfortunately, you can still be sued, regardless of whether a release was signed. A commercial equine liability policy provides coverage for your defense fees and will pay claims for which you are legally liable, up to the policy limits.
Q: We have an equine limited liability law in our state. I made sure the wording was in my release, and I posted the proper signs. Doesn't this protect me from being sued, in which case I don't need an insurance policy, right?
A: You've done everything right so far by including the wording in your releases and posting signs on your property. Unfortunately, equine limited liability laws do not protect you from being sued (though they may help your case if you are). A frivolous lawsuit still requires a defense, and a liability policy should help cover your defense fees.
Also, keep in mind that while most state equine liability laws refer to the inherent risk of riding and working around horses, they are generally not intended to protect you if you are considered negligent or at fault for the accident.
Q: I board and train horses, and sometimes trailer horses for clients, and someone mentioned I should look into Care, Custody and Control coverage. How is this different from the Commercial Equine Liability policy?
A: Care, Custody & Control (CCC) is what helps cover you in the event a horse that is in your care that you do not own (a boarded horse, horse in training, a horse you are trailering for a regular client, etc.) is injured or dies, and the owners sue you because they believe you or your employee were at fault. The standard Commercial Equine Liability policy does not cover these situations, but you can add CCC coverage to your policy.
A: Actually you should still consider this coverage. If one of those horses dies or is injured and the insurance company pays the claim but they believe you or your employee were negligent in causing the loss, you could potentially be sued by the insurance company. If this happens, the CCC policy will help protect you.