Tips on Choosing the Best Insurance Agent for you!

Good afternoon everyone,

I hope you had a wonderful weekend! Today I want to talk to you about choosing the best insurance agent for your needs. As you know, I am an equine insurance agent that is licensed in over thirty states and have been practicing for years. I value all of our clients and work hard to maintain the relationships we have. However, not all insurance agents are the same and it's important that you pick one that not only makes you feel comfortable, but is properly licensed and bonded for what you are looking to insure. Below is an article from bankrate.com on how to choose an insurance agent. I hope you find some of this information beneficial, and remember, if you are looking for an equine insurance agent, please contact us! We would love to hear from you!

The right insurance agent can help you find the right coverage for your company

By Sue Kovach • Bankrate.com
Buying business insurance is no longer as simple as signing up for theft, fire and liability.

A knowledgeable insurance agent is a vital part of any business owner's team. A good agent will help business owners navigate -- and try to understand -- a bewildering maze of complex insurance coverages.

How can you find a good insurance agent who will get you the right coverage for the right price, and help you for years to come as your business grows? Networking with other business owners is a good place to start, suggests Robert P. Hartwig, vice president and chief economist of the Insurance Information Institute.

"It's a tried and true way of finding a good insurance agent, especially one who's familiar with your type of business," he says.

State or national trade associations for businesses like yours. They often have referral lists or agents as members. These agents will know your type of business and its unique risks. Says Hartwig: "It's easier to work with someone who understands your business and can anticipate your future needs as you grow and expand."
Try someone you already know -- your consumer insurance agent may handle business products, or refer you to the right person within their company. By staying with a company you already do business with, "You may save some money right off the bat. Plus, you already have the trust factor," says Kenneth Jillson, executive vice president of Insure One Commercial Insurers in Oak Brook, Ill.
Local networking groups, such as your Rotary club or chamber of commerce, provide social opportunities for you to meet agents and determine if you can work with them. Says Hartwig: "You want to be comfortable that this person is going to treat you fairly, especially if you need to file a claim. You may want to get several proposals for coverage from different agents, then compare both the proposals AND your impressions of the agents."
Company reps vs. independent agents
Both company representatives and independent agents have advantages. Independents may be more familiar with placing unusual risks, such as covering skydiving operations. They also provide more company choices.

"Insurance companies aggressively seek certain types of businesses to insure, then within a few years, they raise rates and move on to other types of business," says Jillson. "A good independent agent will move you with a stable of good companies who for that period are aggressively seeking your kind of business."

Ideally, your insurance agent will be a key member of your business team for a long time. From the beginning, and as your business expands, the agent should be asking YOU the right questions.

"A qualified agent will review with you a list of coverages that, through their experience and education, they would feel you need or may need," Jillson says. "You would pick and choose from that list."

A good agent also keeps on top of your growing business needs.

As you add employees, stock more inventory or buy more equipment, you'll need more coverage. You may appreciate a call once a quarter from your agent to keep your coverage current. You'll also want to be kept informed regularly about new products, such as insurance against loss due to computer hackers -- a necessity for those doing e-commerce.

"Companies are now tying up less wealth in bricks and mortar and putting more in bits and bytes," says Hartwig. "This requires innovative new insurance coverages."

Know your specific insurance needs
From the start, you need to research your insurance needs and know what questions to ask, cautions business owner Elizabeth Mason of West Hollywood, Calif. Her experience with the wrong agent could have led to financial disaster for The Paper Bag Princess, her store specializing in high-end designer clothing, antiques and vintage clothing.

"I assumed I was fully covered for a retail operation," says Mason.

"But the agent, a referral from a friend, sold me a policy that did NOT include burglary or even glass breakage! During an expansion, I was burglarized." It was a $20,000 loss.

Mason says an agent should always check to see if your insurance needs have changed, particularly if you increase your inventory.

"This is very important," she says. "I started with $13,000 in inventory and now have well over 10 times that. I didn't know at first that I needed to increase my coverage regularly."

Mason is now happy with a new agent.

If you're not happy, take your business elsewhere, advises Hartwig.

"The agent business is very competitive. Audition a couple of agents," he suggests. "Tell them why you're not pleased with your current agent, what your business circumstances are and what you're really looking for in an agent. They'll be happy to look at you as a potential purchaser of insurance."

Sue Kovach is a freelance writer based in Florida.

-- Posted: Dec. 16, 1999

Do I Need Equine Insurance: Part 2

Last week we shared part of an article with you, written by Gretchen Ditto, for Equus Magazine. Today, we want to continue that article and talk about medical and surgical insurance as well. Enjoy!

And remember, if you have any questions or want to get equine insurance for your horse, please contact us today! http://www.equineinsuranceagent.com/

Another consideration in choosing a mortality policy is the amount of coverage you actually need. You can insure up to 100 percent of the value of your horse, but obviously, the more expensive the horse, the higher the premiums will be. Rates depend on several factors, including the horse's current value, age, sex, breed and discipline. For most owners, value is the one variable that is the most difficult to determine. Basically the question you want to answer is "How much would it cost to buy another horse similar to mine?" Insurers suggest that you factor in several considerations to arrive at a figure:

• Purchase price. The price you paid is a good starting point for gauging value. However, your horse's worth is likely to change over time, so there are other factors to consider as well.
• Training. The more training you've put into your horse, from ground manners to skills in your discipline, the more his value will have increased above his purchase price.
• Competition records. Your horse's show ring successes are a good way to substantiate his current training levels.
• Breeding record. Successful offspring demonstrate the worth of mares and stallions. Higher values can be justified by the selling prices and performances of progeny as well as other measures of success, such as a stallion's fertility or a mare's ability to carry foals to term.
• Appraisals. Another way to determine value is an evaluation by an equine appraiser. Many are breed-specific. To ensure an accurate appraisal, find a professional with a thorough working knowledge of your breed and/or discipline. Some insurers also accept evaluations conducted by veterinarians.
• Market comparison. Even clippings from classified ads can help substantiate your horse's current value. Some insurers recommend keeping a file that shows the asking prices of horses similar to yours, especially if you don't have other documents to support an increase in value.

A variation on mortality coverage is called "loss of use," which pays a percentage of the horse's value should an injury leave him permanently unable to perform in the discipline identified in the policy. For instance, if an injury ends a jumper's career the owner may collect up to 60 percent of the horse's insured value. But be sure to read the fine print: Many loss-of-use policies give the insurance company the right to take possession of the horse after paying a claim. Others offer two choices: a higher reimbursement if the insurer keeps the horse or a lower reimbursement if the owner keeps the horse.If you decide to insure your horse for more than his purchase price, your insurer is likely to ask you to complete a value-substantiation form to justify your figure. Sometimes no additional documentation is required; however, if you file a claim you may find that the burden of proof is on you. Most agents recommend that you keep an ongoing file of relevant information, such as your horse's show record, training fees and breeding record. That little bit of planning can alleviate the frustration of having to scramble for the information later, during a time that's already emotionally difficult.

Medical And Surgical Insurance
Technological advancements are having a tremendous impact on equine health care, but the costs of certain treatments can be prohibitive. An insurance policy may help you avoid the heartbreaking decision of whether you can afford the veterinary measures that could save your horse's life.

As the name suggests major medical/surgical insurance covers medical and surgical treatment for illnesses and injuries that occur during the insurance policy period. Some companies describe their coverage simply as "major medical," but it often includes surgery as well. Typically, the coverage includes diagnostics, medications, surgery and postoperative care.

Medical/surgical policies usually do not cover routine care such as vaccines and dental treatment, nor do most policies cover elective or cosmetic surgeries or treatment for developmental or congenital birth defects. Alternative therapies, such as chiropractic, acupuncture or magnetic therapy, are often excluded from policies, but some companies review such treatments on a case-by-case basis. Other exclusions are pretty commonsense; for example, don't expect reimbursement if someone other than a certified veterinarian performs surgery on the animal.

The most often misunderstood elements of equine insurance are exclusions based on a horse's previous health history. Usually, a previous injury or illness causes the provider to place a 12-month exclusion on the policy for that particular ailment. "A lot of people are confused about exclusions,' says Jennifer Faust of the United States Eventing Association's equine insurance program. "They often think that if a horse has had a problem, you can't insure it at all. Actually, exclusions are very specific. If your horse has a preexisting bowed tendon on the left front leg, the exclusion is going to address only the left front tendon bow." In most cases, if the horse heals and shows no recurring problems, the exclusion is likely to be lifted when you renew your policy. (Occasionally, lifetime exclusions are placed on mortality policies for certain ailments, such as navicular disease.)

A previous bout of colic is a common source of worry when it comes to exclusions on medical policies. "Remember that there are many variations and degrees of colic," explains Andy Beauchamp of Equine Insurance Specialists in Muncie, Ind.. "A minor case may warrant a one-year exclusion for colic. But lifetime exclusions for colic are rare." Even if an owner faces an exclusion based on a past health problem, there is still a lot of value in an insurance policy says Faust: "You'll still be insured against all the other things that could go wrong."

Weighing the Costs
Whether you buy mortality insurance alone or in conjunction with medical/surgical insurance, your annual premiums will vary depending on your horse, your location and the terms you choose. For mortality coverage you can generally expect to pay premiums of anywhere from 2.5 percent to 4 percent of the horse's value. That means, for example, that the cost of the annual premium to insure a horse valued at $7,000 will likely be between $220 to $280. Obviously the lower the declared value of the horse being insured, the lower the premiums, and vice versa; however, many providers charge a standard $150 minimum for mortality policies.

Adding major medical/surgical insurance to your mortality policy generally means that you'll pay an additional flat fee that is based on the coverage limit and the amount of the deductible, the sum you must pay if you make a claim. Plan on spending an average of $150 to $250 per year in addition to the mortality premium. Most providers offer several different major medical/surgical policies, which are available for flat rates determined by the coverage limit (typically $5,000 to $10,000), the deductible (typically $150 to $250), and the details of the coverage. Cost does not vary for each particular horse, a does with mortality policies.

You can save money on medical coverage by opting for a slightly cheaper "surgical-only" policy, which typically covers only the costs of surgery am postoperative care. These policies frequently will not cover any diagnostic work or hospital costs that occur before surgery. Surgical-only policies are not as common as major medical, simply because the coverage is not as broad, and the cost savings often are minimal. American Equine Insurance Group, for example, sells its major medical/surgical coverage only $50 more than its surgical-only policy.

Many people also save money by purchasing mortality coverage for less than the full value of their horses. "I always insure my horses, but my main concern is the medical benefits, not the mortality" says Debbie Rosen, an eventing competitor and trainer based in Agoura, Calif. "Full-value mortality is cost-prohibitive for me, but I insure for less than full value on mortality because I want the medical and surgical coverage. I never want to be in a position of having to put a horse down simply because I can't afford the treatment that might save him"

This attitude isn't uncommon, says Maggard: "Some people can accept the financial loss of a horse's death, thinking that it's money that's already been paid. It's water under the bridge. But most horse owners I know would spend their last dime to give their horse the medical care that could save his life." Some owners will decrease the horse's insured value as he gets older because they want to be able to purchase major medical coverage but feel they don't need as much mortality coverage.

However much the premiums might be, they're still much cheaper than buying a new horse or paying for major surgery. "A lot of people think insurance is more expensive than it really is," says Beauchamp. "If you purchase the minimum mortality coverage, which costs $150, along with major medical insurance for $150, you're paying only $25 per month ? less than a dollar a day."

Understand the Claims Process
Once you have found a policy that meets your needs, your research is nearly done ? but not quite. Now you'll want to make sure your prospective insurance carrier is a reputable, financially sound company' and that you understand its claims process.

Ask how long the carrier has been in business ? there are exceptions of course, but in general the longer a company has been around, the more financially stable it is likely to be. If possible, check the carrier's standing with an independent rating agency. A.M. Best Company, Inc., rates insurers based on financial resources and ability to meet obligations to policyholders. A.M. Best publishes a guide to its current ratings with an explanation of its system of analysis and also has a website, www.ambest.com. On the site, some of the information is available for free, some pages require users to register, and other types of reports are available for sale.

Once you've made sure you're dealing with a financially sound company, ask about its procedures for filing claims. Timing is often crucial, and you don't want to have to learn the fine points of a process during a crisis.

You will likely find that communication is important: Many insurers require that they be notified if a horse is injured or ill. If you keep the company informed, you'll save yourself from having to provide documentation in a hurry should surgery become necessary or if a complication arises months after an initial illness.

So when is it appropriate to call the claims adjuster? Insurers usually suggest that you notify them of any problem that's serious enough to call a veterinarian. In fact, it's wise to call your insurer when the veterinarian is still with you, if possible, since the adjuster may want to speak with him as well. Most insurance claims adjusters can be reached 24 hours a day, seven days a week. If an emergency occurs at 1 a.m., they want you to wake them up. That's their job.

"We would like to know of any issues right away," says Beauchamp. "However, I own eight horses, and I'd never ask my clients to do what I wouldn't do myself. In an emergency situation, of course, they should keep the animal's best interest at heart and do what needs to be done first." If you're in doubt about the timing of your claim, check the wording in your policy. It should spell out exactly how much time you have before you must file your report.

A clear understanding of policy terms and the requirements for filing a claim will help you avoid unpleasant surprises when you're dealing with insurance companies. And, for most horse owners, the time spent learning the fundamentals of equine insurance is an investment of time well made.

After all, your horse probably provides you with enough surprises. And you know you can't protect him from all of life's illnesses and accidents, but with a properly chosen insurance policy you can make sure that finances alone won't prevent him from getting the medical care he needs. As with any other type of insurance, the best benefit simply may be peace of mind.

Do I need Equine Insurance? Part 1

Do I Need Equine Insurance?
By Gretchen Ditto

Whether your horse is a show ring star or a trail-riding buddy, the right equine insurance policy can give you peace of mind.

©Kate Light. All Rights Reserved.

It's easy to tick off a list of very expensive horses who clearly ought to be insured: million-dollar racehorses, Olympic-caliber sport horses, elite breeding stallions. The annual premiums are small price to pay to offset the financial losses that would be involved if these horses were injured or worse. It also makes sense to insure a seasoned hunter, a promising young cutting horse and a productive broodmare; these horses represent years of investment and effort, and even if they are not a major source of income, you'd probably feel the loss in many ways if anything should happen to them.

But where do you draw the line? Is it wise to insure your "weekend warrior" who picks up a few ribbons every summer at local shows? What about your backyard trail horse? Or your daughter's Shetland? Does equine insurance make sense for horses who aren't or may never be worth large sums of money? Many people would answer "Yes," says Jorene Mize, an independent insurance agent from Lancaster, California. "You'd be amazed at the number of $2,500 horses that are insured. A horse is a major financial investment, regardless of purchase price. The ongoing upkeep and maintenance is costly too, and people want to protect their investments."

The number of equine insurance policies available to horse owners can seem overwhelming, ranging from loss of use to international transit coverage. Some insurers even offer policies to protect a horse owner's tack. For those who operate equine businesses, the list of available policies is even longer: liability for trainers, property and liability coverage for farm owners, even insurance to cover a stallion's or mare's fertility.

However, the basic types of equine insurance coverage purchased by most horse owners are mortality and major medical policies, which roughly correspond to life and health insurance for people. Generally, mortality insurance reimburses a horse owner if the horse dies. Depending on the policy, the owner may receive payment for the full or partial value of the horse. Medical and surgical policies cover the costs associated with treatment of an injury or illness. An owner can purchase mortality coverage alone, but medical and surgical policies are generally available only in combination with mortality.

Given how time-consuming it can be to research different equine insurance policies, it may be tempting to simply gather a handful of quotes and pick the policy with the lowest premium. If you do, however, you'll risk overlooking some key differences among the equine insurance options. "Every insurance company and policy is unique," says Rich Maggard of West Coast Equine Insurance Services in Central Point, Ore. "You're not comparing apples to apples, so you can't rely on premiums alone to make a decision."

That's where an insurance agent can help. A good agent will be able answer your questions and help clarify the sometimes confusing language found in policy statements. Some agents work for a single insurance company; others operate as independent brokers representing a large pool of carriers. Many agents sell a wide range of consumer and commercial insurance policies, but some concentrate on equine insurance. Whatever an agent's professional specialization, experience with horses is crucial, says Mize. "I'm a horse owner, and I know that's partly why a lot of people choose me as their agent. The layperson isn't going to know the terminology if you start talking about navicular or founder. They're not going to be able to interpret your show records."

Whether you're working with an agent or doing your own legwork, it's wise to educate yourself on the basics of equine insurance. Here's a general overview of common types of coverage, exclusions--circumstances under which a policy will not pay--and procedures, along with some guidelines for evaluating different policies and determining how best to protect your interests.

Mortality Insurance
Every horse has value. Though not pleasant thought, it's important to consider what it would cost to replace your horse if he should die. Are you prepared to pay the cost yourself, or do you need an equine insurance policy that will help to bear the burden?

Most mortality policies cover virtually any cause of death, including natural occurrences such as colic as well as fatal injuries resulting from accidents, fire, lightning and other causes. Frequently, humane destruction and theft are also covered. Some policies even protect against freak accidents, like a horse being fatally injured by wild dogs or by falling debris from an airplane. Although age limits vary by provider, full mortality coverage normally is available to horses as young as 24 hours and as old as 17 years. When evaluating a policy make sure the exclusions are clearly spelled out. A company might be reluctant to pay, for example, if a horse dies due to real or perceived negligence or other human error.

Understanding Equine Insurance, an article from Practical Horseman

Understand Equine Insurance

By Elizabeth Iliff

The better you understand the ins and outs of equine insurance, the better you can protect your horse—and yourself.

If your horse colicked tomorrow and needed emergency surgery, could you afford it? If he died suddenly, could you afford to replace him? What if he got loose at a show and injured a spectator, who then sued you to pay for her medical expenses?

Given the potential devastation, both emotional and financial, of such situations, every horse owner needs ready answers in place for questions like these before an emergency arises. An equine insurance policy on your horse could be the difference between losing him and keeping him—or between going bankrupt and staying solvent. In this article, we'll help you explore what equine insurance is available and determine if you're getting the equine insurance coverage you need, whether you're looking for a new policy for your horse or renewing a current one.

Find an Agent; Choose a Company

The first step in selecting equine insurance is finding an agent who can help you decipher the legalese of different policies. Mary Ann Kean, who directs the mortality-underwriting unit at Markel Insurance Company, says, "Some policies aren't very clearly written. You want someone who can go through them with you and explain the differences in coverage." She also recommends "working with someone knowledgeable about your particular breed or discipline," because those factors can affect rates. "Look through your breed- or discipline-related publications, where those specialists advertise."

Along with exploring policy options, ask about the reputation and financial stability of the company that underwrites the policy (pays for claims). Some agents work in conjunction with one or more underwriting companies; Markel is one of a few underwriters that deal directly with horse owners. (A. M. Best Company lists financial-stability ratings of all major insurers in its annual publication, Best's Insurance Reports—available in some libraries.) Also make sure the company is a licensed and admitted carrier in your state. "Each state has an insurance fund to protect residents in the event that they need assistance with claims settlements, and to ensure that products"—insurance policies—"are reliable and fairly priced," Mary Ann says.

Policy Particulars

In shopping for a policy, Michigan-based equine-law practitioner Julie Fershtman, who represents many major equine-insurance companies, advises, "Ask for things that really matter to you. Ask your agent to explain the policy. If he or she insists that your insurance covers something important but cannot find the exact policy language to support it, ask him or her to confirm the explanation in writing."

Comparing prices is a great idea— but, Julie warns, "A cheaper premium might reflect cheaper coverage. Make sure that the policies you are comparing have comparable coverage and that the insurance companies are financially sound and reputable." You can get free immediate quotes and read many insurers' policies online. Markel even offers immediate coverage online for horses valued up to $30,000. (We'll discuss later how to prove your horse's value.)

"What policy you choose depends on how much of a financial risk you want to be exposed to," says Mary Ann. The more add-ons or endorsements you select—major medical, loss of use, etc. (explained below)—the more protected you'll be, but the higher your premium.

However, before you can select any add-ons, your horse must be covered for basic …

Mortality

Somewhat comparable to human life insurance, equine mortality insurance covers death caused by accident, injury, or illness. Many policies also cover theft.

Eligible horses must be "sound and insurable." Most companies consider "insurable" horses to be those no younger than three to six months and no older than fifteen to eighteen years. (Horses older than eighteen can be covered with named or specified perils endorsements, which cover death caused by specific listed risks, typically fire, lightning, trailer accident, and theft.) Underwriters may refuse to write policies for full mortality coverage of horses with serious health problems, such as navicular disease, recurring colic, or chronic laminitis. They also reserve the right to exclude any pre-existing conditions from the policy.

Natalie Scarpaci, a customer-service representative for Hallmark Equine Insurance Agency, says, "We may remove an exclusion a year or two later, after the injury has been reevaluated by a veterinarian." What many customers don't realize, she adds, is that injuries or illnesses a horse experiences during one policy period may be excluded as preexisting conditions by the same company the following year. "This is very standard. Each year, your policy is considered a whole new policy."

Mortality premium rates for most horses range from about 2.5 to 4 percent of the horse's value, depending on age, breed, and discipline. (Rates for horses valued at more than $30,000 or older than fifteen may be higher: from 5 to 10 percent of value.) Horses doing lower-risk sports, such as dressage, tend to have lower rates; eventers and jumpers usually have higher rates. Many companies also offer slightly lower rates for some breeds, such as Arabians and Morgans.

To establish your horse's value for insurance purposes, the underwriters may ask you to supply records proving the price you paid for him. They'll also compare him with horses of similar age, breed, discipline, level of training, and competitive success in the current market. If you believe his value has increased since you purchased him, you'll need to substantiate that with performance records and/or receipts for training fees.

How much money you'll actually receive if your horse dies and the insurance company approves the claim depends on how his value is described in the policy. There are two methods:

• Fair-market value or actual cash value: The company has the right to review your horse's value at the time of loss. Mary Ann warns that this method, some form of which most insurers use, can be risky: "If your horse has a bad show season after the policy goes into effect, he may be worth less money."

• Agreed value: You are reimbursed for the value agreed upon at the time the policy was written, so long as that value has been substantiated. Some companies require that you prove the horse's value at the start of the policy; others require you to prove at the time of the claim that he attained the agreed-upon value at some point during the policy term.

Be sure the terms of the valuing method you choose are clearly written in the policy. Natalie says, "Whatever is in the policy at the time of death is what the company will reimburse you for, as long as you can prove that the horse's value was that amount at some point during the policy period." Some companies require this proof of value at the time the policy is begun; some require it at time of death. (Note: Insuring your horse for more than you can prove he's worth is a waste of money. Even if you pay the higher premium, you won't be reimbursed for more than his proven value.)

Here are some other features to clarify in your mortality policy.

• Euthanasia: In cases of catastrophic injuries and illnesses, such as bone fractures and severe colic, insurers have strict rules about when and why a covered horse can be humanely destroyed. Most follow the American Association of Equine Practitioners guidelines, which recommend that the following criteria be used in evaluating the need for euthanasia:

1. Is the condition chronic, incurable, and resulting in unnecessary pain and suffering?
2. Does the immediate condition present a hopeless prognosis for life?
3. Is the horse a hazard to itself or its handlers?
4. Will the horse require continuous medication for pain relief for the remainder of its life?

According to these guidelines, justification for euthanasia should be based on medical considerations, not economic ones, and the same criteria should be applied to all horses, regardless of age, sex, or potential value.

Most insurers ask to be consulted before an insured horse is put down. If the horse is euthanized without the approval of a veterinarian or the decision cannot be shown to be in accordance with AAEP guidelines, the company probably won't pay the mortality claim. "If the horse is put down for financial reasons, and a veterinarian says that it could have been saved, the company won't pay the claim," Natalie says. But "if it's absolutely impossible to contact the company and the horse is suffering severely, the company would generally accept an emergency euthanasia so long as the attending veterinarian will state that the horse met the AAEP guidelines for euthanasia."

Most nightmare stories about horses' suffering being prolonged while owners wait for approval to euthanize are myths, says Julie; reputable companies have knowledgeable claims staffs available twenty-four hours a day. "I've sat at a dinner table with clients"—claims adjusters—"who stop in the middle of the meal to answer their cell phones and talk to a customer's vet about an emergency. Most of these people are horsepeople themselves, and they're there to help you any time of day or night."

• Specified use: Be sure that you've disclosed to the company all the activities you may do with your horse. If you say he just does dressage and he dies as a result of a jumping accident, you may not be covered.

• Pre-policy proof of health: Before approving an application for horses worth more than a specified amount (usually $25,000 or $30,000), companies require the owner to pay for a veterinary exam. For horses worth less than that, owners must complete a declaration-of-health form. (Note: Be "up front" about your horse's medical history. If, while investigating a claim, your insurance company discovers records of a previously unreported problem, the discovery could nullify your policy or result in additional exclusions.

• Extra expenses: In most death claims, including euthanasia, companies require a veterinary death certificate and proof of a postmortem exam. These expenses, as well as the cost of body removal, are your responsibility.

• Specific exclusions: Most mortality policies list situations that they will and will not cover. For example, if your horse dies as a result of administration of any drug, hormone, vitamin, etc., given without approval of a licensed veterinarian, you may not be covered.

• Policy renewal: Some companies require you to repeat the entire application process each year. Some others guarantee renewal of your mortality policy for one year without exclusions for any illnesses or injuries incurred during the first insured year. A few agents, such as Hallmark's, offer a guaranteed extension endorsement, which covers death resulting from injury or illness that's been reported in writing to the company, for up to a year after the end of the policy period during which the illness or injury occurred—even if you haven't renewed the mortality policy. (Note: Clarify with your agent exactly which illnesses and injuries are covered and which might be excluded as preexisting conditions when you renew your policy. For example, after you've been reimbursed for a colic claim, the company may list colic as a preexisting condition in the renewed policy. You won't be covered if your horse dies from a colic case during the next year unless you can prove it was related to the first incident.)

• Coverage area: Most mortality policies cover a horse everywhere within the continental US and Canada. If you take your horse outside of North America, you can extend your coverage with territorial trip transit coverage.

• Extra coverage: Some mortality policies include extra coverage for no additional cost. For example, Hallmark's policies include an emergency colic surgery endorsement, which covers such surgery up to $3000.

• Payment options and discounts: Many companies offer payment plans at affordable rates. Some also offer multiple-horse discounts. The better you understand the ins and outs of equine insurance, the better you can protect your horse—and yourself.

Major Medical/Surgical

The most popular addition to mortality insurance is a major-medical endorsement. As in human health insurance, this covers medical and surgical procedures required to treat illness, injury, or disease. Covered expenses may include colic surgery, laceration suturing, anesthesia, hospitalization, x-rays, lab tests, and medications. Unlike some human plans, however, equine policies do not pay for preventive health expenses such as vaccinations, worming, and dental work. Julie adds, "Most major-medical policies don't cover performance-enhancement procedures, such as hock injections, either."

Major-medical coverage runs between $175 and $300 per year, depending on the coverage you choose. (Unlike with the mortality premium, breed and discipline don't influence rates.) For each injury or illness claim you make, you must pay a deductible, typically between $150 and $500. The total amount of medical expenses the company will reimburse you for in one year, called the annual aggregate limit, can range from $5000 to $10,000, again depending on the policy you choose and the value of your horse. (Some policies will not reimburse you for medical expenses exceeding the insured value of your horse.)

Some important things to know about major-medical coverage:

• Exclusions: As with a mortality policy, a company may add exclusions to your horse's major-medical coverage. Pre-existing conditions can be excluded, even if they occurred during a previous policy period, so read the policy carefully at renewal time. (Note: Guaranteed extension endorsements apply only to mortality claims. They don't cover medical expenses for conditions excluded in the renewed policy, even if you can prove the condition is related to one that occurred in the previous year.)

• Claims paid: Companies typically reimburse you for "reasonable and customary necessary veterinary fees" for claims reported in the policy period. Therefore, if your veterinary bills show fees higher than those usually charged by vets in your area for the same or similar service, you may not receive full compensation for them.

• Overall premium reduction: Some companies allow you to insure your horse for less than he's actually worth. This way, you pay a lower mortality premium but are still eligible for major-medical coverage. In these cases, the company usually has a minimum mortality premium. So, for example, if your horse's insurance rate is 3 percent and the minimum premium is $150, you'll want to insure him for at least $5000. Not all companies offer this option, however; if yours doesn't, your horse may not be eligible for major medical/ surgical insurance if you insure him for less than his actual value.

• Time limits: Some companies impose time limits on treatment coverage for each particular injury or illness. For example, if your policy covers only the first six months of treatment for a tendon injury, you'll have to decide whether to continue and pay for treatment if your horse needs more than six months' worth.

Many companies also offer "surgical only" endorsements. These cover operating-room surgical charges and aftercare medical fees—and specify a very small (about $50) to no deductible. The most a company will reimburse you for in one year under this coverage is about $5000. Adding a surgical-only endorsement to a mortality policy costs between $100 and $150.

Who's At Fault?

The combination of our litigious society and the unpredictable nature of horses can be a recipe for disaster for unwitting horse owners. Even if you're an amateur horseperson performing no equine-related services for money or in-kind payment, you may be vulnerable to lawsuits.In the last decade or so, forty-four states have adopted equine-activity liability laws to recognize the inherent risks associated with riding and being with horses. Michigan-based attorney Julie Fershtman says, "If an individual is injured as a result of one of the risks mentioned in your state law, he or she may not have recourse"—may not be able to sue. However, none of the laws completely eliminates all possible horse-related liabilities—and some are less effective than others. "Many issues are simply not settled yet as to what each law applies to," she says.

Some of these laws have already been put to the test in court—and some have successfully prevented lawsuits. (Julie knows of at least one equine insurer who now gives its customers a 15 percent credit because of their adherence to their state's liability law.) To find out if such a law exists in your state, consult your lawyer, cooperative-extension agent, state Department of Agriculture, or state horse council. Read your state's law carefully, says Julie, to see how it may or may not protect you.

In today's tough economic climate, Julie also recommends that you consider buying liability insurance. "When people are struggling to make a living and health-insurance costs are high, the potential for them to seek recourse for an injury is greater. Having a liability policy to protect yourself against such lawsuits will, at a minimum, help you sleep better at night."

Your homeowner's policy may cover some horse-related liability on your property (check the wording with your agent), but you may receive better protection from:

a personal horse-owner's liability policy—which covers you against lawsuits brought by injured third parties up to a limit of $300,000 to $1,000,000. Some companies offer the coverage as an endorsement to mortality policies. Others allow you to put as many as five horses on the same liability policy for no extra charge. Depending on the terms and limits, the cost will range from less than $60 to $265 per year. This insurance—which is available only to individuals with no commercial equine exposure (no boarding, training, etc.)—typically covers only injuries to third parties or property.

commercial general equine liability and professional liability insurance (premiums start at about $400)—for professional horsepeople.

care, custody, & control coverage (premiums start at about $300)—for people boarding and training horses.

an umbrella policy to increase your liability limit—can be useful for people with significant assets that a liability lawsuit could target.

There are two kinds of loss-of-use coverage:

Loss of Use
A permanent disability or loss-of-use endorsement reimburses you for a percentage of your horse's value (usually 60 percent or less) if he's permanently disabled. "It can be a very wise investment," Julie says, "but it is expensive, and you need to understand exactly what you're getting. ‘Loss of use' means a horse's totaland permanent inability to perform its specified use." Based on a percentage of your horse's value, the premium for loss-of-use coverage is usually higher than that for major-medical coverage.

• External-injury-only loss of use covers visible injuries caused by external, accidental, and violent means that render a horse permanently incapable of performing his insured use. For example, if you have a show hunter who's injured in a trailer accident and will never show in the hunters again, you'll receive compensation. Be aware, though, says Natalie, that for this type of policy "the ground is not considered an external force." In other words, concussion- or footing-related conditions, such as tendon and ligament injuries, aren't covered.

• Full loss of use covers a broader range of disabilities caused by accidents, injuries, or illness, including diseases such as EPM and navicular, as well as ground-related injuries. Policies do not cover losses due to preexisting conditions, scarring or blemishing (for example, on a halter horse), or losses related to use for racing and/or breeding. (Other special endorsements, such as stallion infertility, are available.)

Points to consider in comparing loss-of-use policies:

• An extensive exam, including X-rays and drug screening, must be performed on your horse—at your expense—before he can be approved for a full loss-of-use endorsement. Many external-injury loss-of-use plans don't require a vet exam.

• Many companies reserve the right to take your horse from you in the instance of a loss-of-use claim. Julie says, "Their intention may be to resell the horse to recoup some of the money they paid in the claim. In some cases, the company truly believes that it can rehabilitate the animal; in other cases, it may feel that the horse has other uses. In all of the instances that I've witnessed, the companies have had very good intentions and have found good homes for the horses." If keeping your horse, even if he can no longer perform in his original capacity, is important to you, read your policy wording carefully.

• Flat versus variable rate: Some companies pay a flat percentage of your horse's insured value. Others offer "up to" a certain percentage of that value. In the latter plan, how much money you receive from a claim may depend on how badly your horse is injured. For instance, if your hunter damages a suspensory ligament and can't return to the same level of competition but can still be used as a trail horse, you may receive less than the maximum possible claim. If he can't be ridden at all, you should receive the full claim. Before purchasing the endorsement, clarify exactly how much you'll receive in each different imaginable circumstance.

• Most loss-of-use policies require the owner to "do everything possible to treat the animal" before submitting a claim. (To make this financially feasible, Markel requires that owners purchasing a permanent-disability endorsement also buy major-medical coverage.)

• Horses in some sports may not be eligible for loss-of-use coverage, either because the sport is too high-risk or because soundness is not an identifiable factor in the sport. Markel, for example, offers permanent-disability coverage for hunters, dressage horses, and "performance" Quarter Horses with values greater than $10,000.

• In the case of a claim, most companies reserve the right to bring outside veterinarians in for additional opinions on the severity of your horse's disability.

• Once a loss-of-use claim has been paid, all other mortality coverage and endorsements in effect are then canceled.

Know the Notification Protocol
Once you've selected and purchased a policy, review all the things it requires you to do. You'll be required to notify your agent or company as soon as possible after any accident, injury, or illness. Post that phone number and your policy number by your horse's stall, in the tack room, and in your truck or trailer, tack trunk, etc. Also inform all the people involved in his care of the policy's notification requirements.

"One of the most common problems we see is late reporting of injuries or illness," says Mary Ann. "Obviously, we want you to call your veterinarian first. But call the company, too, within a reasonable amount of time: twenty-four hours or less." Many claims are void if submitted later than the time allowed in your policy, or if notification is not given within a certain amount of time after the incident. Check the wording in your policy!

When you notify the company, be sure you're calling the right person, says Julie. "If you check your insurance policy, you may be surprised to learn that the agent who sold you the insurance policy is not the one to notify if your horse is injured or ill or if you have a claim. Giving notice to the wrong person could be treated the same as giving no notice at all."

This article originally appeared in the July 2003 issue of Practical Horseman magazine.