by: Christina G. DiSalvo, M.A.
Bloodstock refers to pedigreed livestock, such as cattle, dogs or horses. Bloodstock insurance is financial protection for loss of that animal’s use, whether that is for breeding, racing, showing or pleasure.
For horses, you can purchase a mortality insurance policy. This is life insurance for your horse. The limit of mortality coverage is determined by the value of the horse. There are several ways to determine the monetary (market) value of a horse; purchase price, appraisal, training fees or show record.
Once a value has been agreed upon between the owner (insured) and carrier, a rate is applied to calculate the premium based on the horse’s age, breed and use. A two-year old Thoroughbred racehorse will have a different rate than a fifteen year old warmblood dressage horse, so it is necessary to have the correct information, age, breed and use.
Once the mortality insurance is purchased, you can endorse additional coverage. Major medical is the most common endorsement but there are others, such as surgical, colic, loss of use and infertility. Major medical covers any major medical issue (unless previously excluded) up to the limit indicated on the declarations page of the policy and subject to a deductible. Different carriers will have different limits available and restrictions. An example of a major medical issue is a horse steps on a six-inch nail and it penetrates the sole and drives through the hoof wall causing the horse to become lame.
The surgical endorsement provides “surgical treatment” in the event of an accident, injury, illness or physical disability during the policy period. There are exclusions with this coverage, so please read the full endorsement carefully.
The colic endorsement provides coverage for “colic treatment” by an incident of colic during the policy period. Colic is an all-encompassing term for abdominal pain caused by intestinal gas or an obstruction in the intestines. There are various forms of colic, from mild to severe cases. The mild cases can easily be treated by a veterinarian, if caught early, while the more severe cases may require a trip to the hospital and surgery. It’s important to always have clean food and water for your horse and a watchful eye. We’ll do a separate informative blog about the more common forms of colic, so stay tuned.
Loss of use endorsements are very specific to the use of the horse. This coverage is typically added for hunter jumpers, dressage horses and eventers up to a specified age by the carrier. Infertility endorsement is purchased for breeding stallions. It covers an insured stallion if he becomes totally and permanently infertile, impotent or otherwise incapable of serving a mare as a result of an accident, illness, or disease sustained during the policy period.
Each carrier provides their own limits for coverage and availability of endorsements will vary with carrier. Please contact us today to find out the carrier and policy that fits your horse’s needs.
Disclaimer: The above content is a general overview which is provided for discussion purposes only and is not in any way meant as providing recommendations or legal counsel. It is not intended to apply to each circumstance. Because the facts and circumstances of every matter differ and the terms, conditions, exclusions and limitations contained in insurance policies vary, you should review your policy carefully and seek any legal counsel that may be necessary or appropriate. Momentous is not responsible for any losses or damage resulting from reliance on the information contained herein.
If you would like to further discuss the issues raised here, you may contact Christina at firstname.lastname@example.org.