Equine Mortality

Mortality coverage insures you against financial loss in the event your horse dies as a result of natural or accidental causes while in the United States or Canada. You are also insured against loss resulting from intentional destruction of an insured animal to alleviate incurable and excessive suffering caused by an insured peril, provided the company agrees to the destruction.

Minor injuries, depreciation value, and failure to perform the duties for which it is kept are not covered. (See major medical and Loss of Use Coverages for more information)

The company is not liable for more than the amount for which the animal is insured, nor more than its actual cash value at the time it sustained the injury or contracted the disease that caused the loss, whichever is less. (Agreed Value policies are available in some instances)

The policy is effective only after the completed application and veterinary certificate (or Statement of Health if value is less than $100,000 (or as required by a specific company)) have been received and approved by the appointed underwriters. The policy is issued for one year and goes into force at the time and dates specified in the policy. Policies cancelled by the insured may incur earned premiums.

Establishment of Values

The insurable value of your horse is its purchase price and at the option of the underwriters may be increased to cover money invested in training and transportation from the point of purchase. The value can be further increased by the accumulation of race winnings, show accomplishments, and the performance of offspring. Speculative value, sentimental value, replacement cost or losses of profits are NOT a part of insurable value. Requests for increases in value must be accompanied by substantiation information. Offers to purchase, unless accepted, do not necessarily constitute an increase in value.

Applications

Livestock mortality insurance is a form of term insurance. Therefore, any horse proposed for insurance must be clinically normal and warranted in good health. A veterinary certificate (or Statement of Health) attesting to the horse’s condition must be included when the application is submitted.

Exclusions

The livestock mortality policy does not cover:

• The death of an animal that is used for any purpose other than stated in the applications.
• Death directly or indirectly caused by, happening through, or in consequence of any surgical operation unless certified to have been made necessary by an insured peril and performed by a qualified veterinary surgeon in an attempt to save the animal’s life.
• Death directly or indirectly caused by, happening through, or in consequence of any injection, unless administered by a qualified veterinary surgeon and certified to have been of prophylactic nature or necessitated by accident, illness, or disease.
• Death resulting from the destruction of any animal due to having contracted or been exposed to a contagious disease, whether destruction is carried out by a governmental authority or otherwise.

What Equine Mortality Insurance Actually Protects

Equine mortality insurance is the foundation of almost every horse insurance programme, and it works in much the same way that a life insurance policy works for a person. If your horse dies from natural causes, accident, illness, injury or disease while in the United States or Canada, the policy pays the insured value so that you are not left carrying the full financial loss on your own. It also responds when an insured animal has to be humanely destroyed to relieve incurable and excessive suffering caused by an insured peril, provided the insurance company agrees to the destruction beforehand.

For most owners, that protection is about far more than sentiment. A horse represents a real financial investment — purchase price, months or years of professional training, transport, campaigning and show mileage. Mortality coverage allows you to replace that investment with an animal of comparable quality rather than starting again from the beginning. If you bought a young or green horse and have since added training and competition experience, the policy lets you replace the animal at the level you have reached, not the level you began at.

It is equally important to understand what the policy is not. Livestock mortality insurance is a form of term insurance, not a maintenance plan. Minor injuries, ordinary depreciation in value, and a horse’s failure to perform the duties for which it is kept are not covered under the mortality section. Those exposures are addressed separately through Major Medical, Surgical and Loss of Use endorsements, which can only be added on top of an active mortality policy rather than purchased on their own.

How the Insured Value of a Horse Is Decided

The insurable value of your horse starts with its purchase price. At the underwriters’ option it may be increased to cover money invested in training and in transportation from the point of purchase. From there, value can grow through accumulated race winnings, show accomplishments and the proven performance of offspring.

What cannot be included is just as important. Speculative value, sentimental value, replacement cost and anticipated loss of profits are not part of insurable value. Any request to increase a stated value must be supported by documentation — show records and training records submitted to the carrier for review alongside the proposed new value. An unaccepted offer to purchase does not, on its own, establish a higher value.

The practical lesson for owners is simple: keep your justification of value current. If your horse has been campaigned successfully since the policy was written, gather the records and ask your agent to submit them before you have a claim rather than after. Values are settled on fair market value, and the company is never liable for more than the amount for which the animal is insured, nor more than its actual cash value at the time it sustained the injury or contracted the disease that caused the loss — whichever figure is lower. Agreed Value policies, which fix the settlement figure in advance, are available in some instances.

Eligibility, Age Limits and Health History

Because mortality insurance is a term product, any horse proposed for cover must be clinically normal and warranted in good health at the time the policy is written. A veterinary certificate — or a Statement of Health where the value falls below the carrier’s threshold, commonly $100,000 — must accompany the application and attest to the horse’s condition.

• Youngest age: a foal can be insured for mortality from as early as 24 hours old. Major Medical and the other endorsements generally become available from around 30 days of age, although the minimum varies from carrier to carrier.
• Oldest age: mortality cover is generally written up to 20 years of age.
• Colic history: a horse that has been treated for colic can usually still be insured, depending on the type of colic and how many episodes have occurred. A horse that has undergone colic surgery may also be eligible, provided there was no bowel resection and no repeated episodes. Exclusions may apply to mortality and to other coverages as a result.
• Use and discipline: your horse’s declared use is part of the contract. The policy does not cover the death of an animal used for any purpose other than the one stated on the application, so tell your agent before the job changes.

Cover During Transport, Shows and Travel

Horses rarely stay in one place, and an equine mortality policy is written with that in mind. Your horse remains covered during transport as long as it does not leave the United States or Canada. Travel to selected other countries can be arranged, but the carrier must be notified in advance and additional fees apply. Notifying your agent before an international trip, a long haul or an extended lease is one of the simplest ways to avoid a coverage gap at exactly the moment you need protection most.

Adding Major Medical, Surgical and Loss of Use

Mortality cover answers the question “what happens if I lose my horse?” It does not answer “what happens if my horse survives but the veterinary bills are severe?” That is the role of the endorsements that attach to the mortality policy:

• Major Medical covers medical and surgical procedures, including diagnostic tests, arising from accident, illness, injury or disease, with limits available up to $25,000.
• Surgical Coverage responds to surgical procedures performed under general anaesthesia and includes up to 50% of the cost of non-surgical veterinary aftercare, with limits available up to $10,000.
• Full Loss of Use applies when a horse becomes permanently unable to perform its insured use because of accident, illness, injury or disease, paying up to 70% of the insured value depending on the carrier.
• Accidental Loss of Use narrows that trigger to visible injury caused by external, accidental and violent means, again paying up to 70% of insured value depending on the carrier.

These endorsements cannot be bought a la carte. They are available only as additions to a mortality policy, which is one of the main reasons owners who are primarily worried about vet bills still begin with mortality cover. Loss of Use in particular is not offered for every discipline — it is usually eligible for hunter/jumper, dressage and sometimes reining horses. Major Medical claims are settled on a reimbursement basis: you pay the veterinarian directly and then submit the invoices promptly for reimbursement.

Binding Cover, Renewals and Reporting a Claim

A mortality policy becomes effective only once the completed application and the veterinary certificate or Statement of Health have been received and approved by the appointed underwriters. The policy is issued for one year and comes into force at the time and date specified in the contract. Policies cancelled mid-term by the insured may incur earned premium, so it is worth discussing timing with your agent before making a change.

Renewal follows a similar rhythm. You should receive a renewal application roughly 30 to 60 days before your renewal date. Answer the questions and return the completed application before the expiration date — grace periods are not offered, so a late application means a lapse rather than a delay. If a renewal application does not arrive, contact the office rather than waiting.

When something goes wrong, speed matters. Notify us immediately, or within 24 hours at the very latest. For anything serious enough that the veterinarian is coming out, make contact straight away. Your policy is issued with 24-hour claim cards for exactly this reason — keep one with you and leave one at the barn or with your trainer. The carrier must be notified before surgery, and before euthanasia is carried out where it has been recommended. Failure to notify the agency and the carrier in time can void coverage on an otherwise valid claim.

Why Work With a Specialist Equine Agency

Equine Insurance, a division of Parker General Insurance, has spent over 40 years placing equine and farm-related coverage, and has been selected by nationwide equestrian organisations, farms, trainers and Olympic team members as their insurance provider. Researching carriers, comparing what each one will and will not write, and matching a policy to a particular horse and discipline takes time that most owners would rather spend riding. An experienced agent does that work for you, and stays involved through value increases, renewals and claims.

Ready to insure your horse, or to review the cover you already have? Request a free quote online and one of our agents will walk you through the options, read more about Major Medical, Surgical and Loss of Use endorsements, or browse our frequently asked questions for more detail on how equine policies work.