This week we continue with answers to some frequently asked questions (FAQ's). Sometimes people ask, why should I even bother to insure my horse? They will be fine, I take good care of them. Well, there are many reasons to consider equine insurance. Here is an article answering the question:
The cost of insurance is minimal when compared to the overall costs of maintaining your horses, paying for colic surgery, or paying a lawsuit. It'll probably cost more to enter your horse in a show than to insure it.
If you've just purchased a horse, it may be a good idea to carry the optional Major Medical & Surgical in addition to the standard Mortality, just because you don't know what medical problems the horse may have. After a year, you might decide to carry just the standard Mortality. Note that Medical & Surgical is an optional addition to the mortality - it can't be purchased as a stand alone item.
You should insure your horses to protect you against the possibility of losing them to various causes, which may put you in a financial bind to attempt to cure an illness, or pay for an accident, theft, or death. Too often, a horse is injured, or colics, therefore requiring expensive surgery which would save its life. However, due to the unexpected nature and cost, this isn't always possible, and ends with the horse suffering or dying.
The standard Mortality insurance provides some colic surgery coverage. With mortality insurance, the company will give you money for colic surgery (up to 60% of the value of the animal, with a maximum coverage of $3,000). Further, if you wish to add the Major Medical & Surgical insurance, additional colic surgery or other surgery coverage is provided, as well as coverage which will pay for nearly any medical problem other than regular checks or maintenance. The standard Mortality insurance also covers against theft.
Personal horseowners liability insurance is also available. This insurance covers up to five horses, with coverages ranging from $300,000 to $1,000,000 at affordable premiums. It provides legal defense should you be sued, and/or payments should your horse cause damage or bodily injury.
While many states do have some "limited liability" laws to protect horse owners, in many cases you can be liable for damage done by your horse, even if you're at a boarding stable or at a horse show. Even people who board their horses can be liable for damage a horse does, unless the stable owner can be proved negligent, such as by not fixing a fence or letting a known biter near the public.
Often you'll be asked to sign a waiver at shows or other horse-related events. According to legal experts, the waivers generally hold up in court unless there are extraordinary circumstances, such as a stable putting a novice rider on a known problem horse.
If you're running a boarding business, trail or pony ride business, provide horse training, or operate a riding club, you should insure the business for liability should a horse or rider cause damage to another party. Note that club insurance provides liability for spectators or others, but doesn't cover the club members, or their horses, as they should each carry their own insurance. For boarding stables, an individual's home owner's insurance will sometimes cover you, although if you sell or train more than one horse, the home owner's insurance may not apply. Be sure to check your individual Home Owner policy.
Mortality insurance is sort of a "life insurance" policy on your horse. It covers death from virtually any accident or sickness, and our policies include humane destruction by a veterinarian.
The bottom line is, how much are you willing to lose, should you have to replace your animal, pay for surgery, or defend yourself in a lawsuit? Use that as your basis for deciding if you need insurance, and what coverage levels you will require.
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