Equine Insurance Policies

Insurance. It’s a fact of life for most adults. We insure our vehicles, homes, businesses—even our smartphones. We buy life and health insurance. Horses can also be insured. Equine insurance coverage policies are available for almost any horse or pony, whether grade or registered.

Unfortunately, much of what happens in life is out of our control. Insurance can’t prevent bad things from happening, but it offers a financial buffer when they do.

Here, we’ll review the most common equine policies, what they entail, and different circumstances to consider.

Most Common Equine Insurance Policies

Restricted Perils

Also called Specified or Named Perils, Restriced Perils is the least expensive option and covers only what is listed in the policy, such as death by wind, fire and/or smoke, lightning, collision, or overturn in vehicular transit. Depending on the company, it may include theft.

Full Mortality

A full mortality insurance policy covers death due to any cause, except for willful neglect or destruction. It covers the insured horse in the event that he dies or must be humanely destroyed due to illness, accident, injury, disease, fire, smoke, lightning or theft.

Think of Restricted Perils and Full Mortality policies as “life insurance.”

Major Medical

Major Medical protects the horse owner against covered medical, veterinary, and surgical costs up to a specified amount per policy year.

Surgical

This policy reimburses for covered surgical expenses up to a specified amount per policy year. Surgical coverage applies to necessary procedures performed under general anesthesia, not elective surgeries, like castration.

Colic

This equine insurance policy reimburses for a medical or surgical colic.

Major Medical, Surgical and Colic endorsements aren’t available on their own, but can be added to a Full Mortality policy. Think of these policies as “health insurance.”

Equine Insurance Policy Details

“Full Mortality is the base policy, and then you can add to it,” says Rhonda Mack, an agent in the Ocala, Fla., office of EPIC Insurance, a nationwide company.

“Most insurance companies include a colic surgery endorsement with Full Mortality, but you can add additional coverage on top of that,” says Mack, noting that some companies allow “stacking” of endorsements.

A colic endorsement has a $10,000 limit and will reimburse the owner for medical or surgical colic expenses for an insured horse.

Major Medical typically covers issues like lameness, gastric ulcers, eye injuries, clinic costs, MRIs, et cetera, plus surgical costs, such as colic surgery. Some insurance companies include acupuncture and chiropractic in their Major Medical policy, but coverage varies with each company, so read your policy carefully.

The decision to purchase equine insurance is both financial and emotional.

“It’s based on your comfort level and what you worry about happening to your horse,” says Mack. “If your horse is facing a $12,000 colic surgery and you have to make a decision based on if you can afford it or not, insurance can give you peace of mind, knowing you have help with veterinary expenses.”

Horse Value

The premium for Full Mortality coverage is determined by the price you paid for the horse and his use (pleasure, show, racing, or breeding). If you bred the horse, your insurance agent can help determine a value based on stud fee, bloodlines, sales averages, et cetera.

“Most carriers now require a minimum Full Mortality insurance amount of $15,000 to be eligible for Major Medical,” says Mack.

The following examples are based on December 2023 policy prices.

An 8-year-old dressage horse insured for $25,000 under Full Mortality with a $10,000 major medical policy would have an annual premium of approximately $1,375.

A 10-year-old Quarter Horse trail horse insured for $5,500 with a $10,000 surgical endorsement and $5,000 free colic surgery would have an annual premium of approximately $350.

Reimbursement

Major Medical already includes surgical expenses up to a specified amount. For a relatively low price (usually under $200), owners can add a $10,000 surgical endorsement to their Full Mortality coverage.

Endorsements function by reimbursement, rather than paying the veterinarian directly. The horse owner pays the veterinarian and then turns in the invoices and veterinary report to be reimbursed for the covered expenses, less any deductible and copay.

For example, if the insured horse required a $9,000 colic surgery, after the deductible and co-pay are applied, the owner would be reimbursed about $8,000.

Horse Age

Age comes into play when insuring horses.

“After age 15, premiums get higher,” says Mack. “Most companies will insure to age 18, some to age 20. We consider all horses’ birthdays to be January 1, even if they’re born in June.”

Even though full mortality and surgical coverage aren’t usually available after age 20, Restricted Perils coverage is still offered.

Individual Horse Owner’s (IHO) Liability Coverage

Individual Horse Owner’s (IHO) liability coverage has nothing to do with the health of the horse. This policy protects the owner in the event their horse causes damage to a person or property.

“Equine liability is recommended,” says Mack. “Any time you own a horse, you have risk exposure.”

Coverage provides liability protection in many situations, such as if your horse gets loose at a show and injures someone.

You don’t need to own property to purchase this coverage, and it’s for those who don’t derive income from their horses. With IHO liability, the premium is based on the number of horses owned.

Mack says that an IHO liability policy with $1 million coverage covering a few horses generally costs less than $400 a year.

Many people mistakenly assume their personal homeowner’s policy extends to cover damage or injury caused by horses.

Insurance for Equine Businesses

People who own breeding and training farms or boarding stables should have a commercial liability or farm package policy, which includes the residence on the property as well as equine owner’s liability coverage. Care, custody & control is another option if you board horses you don’t own.

Let’s say your horse breaks through the fence and ends up on the road, causing an auto accident. If there is damage to the car and/or an injury or death of the car’s occupant(s), a resulting claim would not be covered under most homeowner’s policies.

However, if found negligent, it would be covered under a commercial farm owner’s policy or IHO liability policy. (Equine liability policies also cover defense costs).

An Example Pandora Driscoll, an emergency room nurse who lives in north central Florida, purchased a Full Mortality policy and added Major Medical and Surgical endorsements for her 15-year-old KWPN (Dutch Warmblood) gelding. When the horse was imported from Europe last year, she added a coverage territory extension for that period of time. Her 12-year-old warmblood mare is enrolled in the complimentary colic coverage programs offered by both SmartPak and Platinum Performance (see below). “I’m already using their supplements, so I might as well sign up for the coverage,” says Driscoll, who competes in FEI-level dressage. She’s never had any claims on a horse, but she’s relieved to have insurance. “Colic or a major medical issue are my biggest concerns, which is why I have coverage,” says Driscoll. “It’s peace of mind to have that protection and extra comfort that they’re insured.”

Key Takeaway

If you decide to consider insurance coverage, don’t be afraid to talk to more than one provider, get multiple quotes, and ask plenty of questions.

In the end, your peace of mind is worth every penny.

This article about equine insurance policies appeared in the April 2024 issue of Horse Illustrated magazine. Click here to subscribe!