Equine Law Blog

Common Myths Regarding Equine Insurance - Part 3 of 3

The first two articles in this series explored myths 1-10 surrounding equine-related insurance (Myths 1-5 and Myths 6-10).  Remember, it is important to read your insurance polices thoroughly and not rely on common myths.  Let's take a look at myths 11-15 in the final part of this series.

11) “I Can Buy Mortality Insurance in An Amount That Exceeds My Horse’s Real Value.”

Mortality insurance policies insure the horse’s market value, not a future value.

12) “My Horse is Sore, But I Can Still Recover 100% of His Value Under a Loss of Use Policy.”

Loss of use policies are really not designed to pay 100% of the value of a horse simply because the horse is rendered temporarily disabled.  Unlike mortality insurance, which pays a sum if your horse dies or is stolen, loss of use insurance applies if your horse is alive but suffers from a physical condition that renders it permanently unable to perform the specific function for which it was insured (such as showing or racing).  Consequently, before they will issue payment under a loss of use policy, insurance companies require proof that the horse is “totally and permanently” unable to fulfill its intended use.  Under this standard, a temporary soreness condition will not make your horse a candidate for payment.

13) “My Major Medical and Surgical Insurance Will Pay All Expenses Involved in Keeping My Horse.”

Major medical and surgical insurance is optional extra insurance coverage that many companies offer along with an equine mortality insurance policy.  This coverage applies to expenses reasonably associated with serious, costly care of a horse, such as colic surgery, but not unrelated costs, such as Coggin’s Tests and routine inoculations.

14) “Our Event Liability Insurance Policy Insures Us Against Claims That May Be Brought By Spectators and Participants at the Show.”

Event liability insurance for shows, clinics, or expositions, usually only applies to claims for injury, death, or damage brought to spectators.  Unless the policy specifically provides, this type of insurance may not cover claims brought by event participants, such as competitors.

15) “Cheaper Insurance is Better.”

The cheaper premium might reflect less coverage.  Make sure that the policies you compare have identical coverage and that the insurance companies are financially sound and reputable.

Conclusion

Don’t fall prey to myths.  Make sure you are protected.

Categories: Insurance, Liability