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 18-20 years, depending on the insurance company.
Major Medical / Surgical: Horses over 31 days through 18-20 years old, depending on the insurance company.
Surgical Expenses 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 or Surgical Only coverages. Your horse's use and level, and any intended uses during the policy period must be stated on the mortality application. If the horse's use or level changes mid-policy, you must notify the insurance company for their review and an additional premium (or refund) may be due.
Q: Is my horse insured when we drive to another state?
A: Yes, once coverage is bound, your horse should be covered while traveling by land 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 coverages only cover while the horse is within the continental U.S. and Canada, but can usually be extended while the horse is located in most other countries. The insurance company will require prior notice as well as an additional premium, as well as details on the flight (dates, locations, transport company, flight numbers, etc.), and underwriting approval must be obtained before any coverage is in place, which means that it is important that you contact the insurance company prior to any travel taking place. Quarantine expenditures are not covered and coverage cannot be started while a horse is in Quarantine. Ask the agent for more details. NOTE: If the insurance company is not notified of the horse's international travels in advance of the trip (and has the opportunity to approve the extension), your insurance policy will be considered void.
Q: Can I get Major Medical/Surgical coverage on horses of a lower values, such as $10,000 or lower? Also, can I get Major Medical/Surigcal and/or Surgical Expenses Only coverages by themselves?
A: We do work with companies that will offer Major Medical/Surgical coverage limits ranging from $5,000 to $15,000 on horses with insured values as low as $1,000 (providing the horse otherwise meets the company's underwriting critera), which is unusual in today's market. That being said, Major Medical/Surgical & Surgical Only 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 $100,000 or less. If you are insuring for more than $100,000, 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 a very detailed veterinary exam (similar to a pre-purchase exam) with current radiographs of all four feet and fetlocks, hocks, and stifles.
Q: Can I start coverage today?
A: We can usually bind coverage upon receipt of the required paperwork and underwriting approval, which generally can be the same business day we receive all the required paperwork, if it is during business hours, Monday through Friday, and providing all paperwork is complete and in order, and we receive underwriting approval. 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 to four weeks to make at least a down payment, either to our office, or to the insurance company (some companies that we work with handle the billing directly).
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 (debit or credit). Payment options directly to the insurance companies vary -- typically they accept Visa, MC and potentially e-checks.
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 $100,000 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 $100,000. Also, the underwriters may ask for a veterinary certificate due to advanced age of the horse (16 or older), if the horse has experienced health issues during the policy period, and/or if the horse is covered by certain endorsements such as Loss of Use or Stallion Accident, Sickness and Disease.
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 and the most you could insure the horse for at that time.
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 the amount you originally purchased him for, 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 underwriter feels 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 18-20 years, you should seriously consider adding Major Medical/Surgical coverage to your Full Mortality policy. This coverage will help reimburse you for covered veterinary costs (both medical and surgical) in the event your horse has a covered injury, illness, accident or disease during the policy period.
Remember, while the Full Mortality policy includes coverage for humane destruction, the situation must meet the requirements of the policy. The policy does not cover for euthanasia due to non health related, economic or philosophical reasons. If your horse develops a serious condition that requires costly medical or surgical care, and the veterinarians recommend that treatment to save the horse's life, 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 the horse dies because you do not pursue treatment, or if you choose to put your horse down instead of pursuing treatment (or the horse dies as a result of not being treated), regardless of your personal reasons for doing so, the Full Mortality policy would likely not respond.
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 will likely 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: Probably not. It is likely that the only coverage that might apply would be if the people operating the boarding business have Care, Custody & Control (CCC) coverage, which is a type of liability coverage meant to protect them in the event a client's horse in their care is damaged, and the client feels it was due to their negligence and pursues them legally for compensation. 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.return to list.
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 a covered accident, sickness, or disease. Specific paperwork is required for consideration of this coverage - contact our office for details.
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 general 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 general liability policy that covers your boarding. If you don't have any general 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 independent instructors and trainers who utilize your facility have their own general 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 current 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 by a third party for bodily injury or property damage due to the insured person's covered 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 General Liability policy and also consider adding Care, Custody and Control coverage, and these can follow you wherever you teach or train within the continental U.S.
Q: I have my clients sign a release of liability. Shouldn't this prevent them from suing me?
A: You must have clients read and sign a release of liability/wavier/hold harmless agreement (one that you've hopefully had reviewed by an attorney), as the insurance company requires it and it is in your best interests from a business standpoint. Unfortunately, even if the release has been signed, that does not prevent you from being pursued legally by the person who signed it, but it could be instrumental in your defense. Also, if your state has an equine liability statute that requires wording in your liability release/waiver/hold harmless agreement, you must make sure that wording is included.
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 general liability policy should help cover your defense fees in the event your are pursued legally by a third party for bodily injury or property damage that they believe you were negligent in causing while performing your covered equestrian operations.
Also, keep in mind that while most state equine liability laws refer to the inherent risk of riding and working around horses, they are not necessarily 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 non-owned boarded horse, horse in training, a horse you are handling for breeding purposes, or a horse you are trailering for a regular client, etc.) is damaged, and the owners sue you because they believe you were at fault. The standard Commercial Equine General Liability policy does not cover these situations, but you can add CCC coverage to your policy to help protect you.
A: Actually you should still consider this coverage. If one of those horses dies or is injured and the owner's insurance policy pays the claim, but the insurance company believes you were negligent in causing the loss, you could potentially be sued by the insurance company--this is called subrogation. If this happens, the CCC policy will help protect you.
All information on this website is for basic informational purposes only, and does not constitute advice or any guarantee of coverage from Broadstone Equine Insurance Agency. Contact our office directly at 888-687-8555 or info@BroadstoneEquine.com to speak with an agent for complete and current information regarding all coverages.