Why is it that, whenever we are not insured or just about to obtain insurance, disaster strikes and we end up paying a fortune in vet, hospital and/or legal bills! Being insured means we can hopefully be spared some of those overnight financial crises.

A horse can be a sizeable financial and emotional investment

Insurance was originally intended to help us recover from a financial loss and pay our litigation costs. Today, your horse, too, may be insured against a variety of misfortunes, including mortality (death by accident or illness), specified perils (fire, lightning or transportation damages), infertility and reproductive hazards, theft and loss-of-use (disability).

A horse can be a sizeable financial and emotional investment. Though not inexpensive, equine insurance will have you better prepared if your horse requires costly medical procedures. Generally, the cost of insurance is minimal compared to the overall costs of maintaining your horse, paying for colic surgery, or paying a lawsuit. In fact, the cost of entering your horse in a show is often higher than the cost of his insurance.

So, how can you make sure that you are covered, does it make sense to be covered, and what options are the best to go for?

Measure his worth

Insuring your horse depends largely on several aspects. There are questions you need to ask yourself before you insure:

• How much is my horse worth?
• How much will my horse be worth if I am training and competing it successfully?
• How much can I afford in vet's bills if something serious happens?
• Can I afford what it takes to ensure my horse’s wellbeing and survival?
• Would I want the vet to operate in the case of serious colic or any such lifesaving surgery?
• Would I want to have money to replace the horse should it die?
• Do I ride/work with my horse in the company of others and do I want to be insured in case my horse causes injury or death to someone or their horse or causes damage to someone's property?
• Is my tack valuable, would I want to replace it if it is stolen or lost?
• Do I want to insure my horse for when he travels, do I want to insure my horsebox, or insure myself against public liability when my horse travels in someone else's horsebox?

If you answered yes to these, then you should consider insuring yourself and your horse.

Types of cover

Equine mortality insurance is the most common type of insurance purchased by horse owners. Mortality coverage is similar to human life insurance and is for the value of the horse, should it die. The policy can insure the horse for up to 100% of its value. Premiums range from a percentage of the horse's value, which is determined by its original purchase price, training, and performance records. Some, though not all, equine mortality insurance policies even cover humane destruction of the animal in cases of mortal injury or disease.

Horses can also be put on a health insurance policy. This usually covers accidents and illnesses, as well as dental care and physical check-ups, vaccinations, worming, joint injections, dentistry, or other routine classified procedures. Common equine diseases are also usually covered, and even major events like broken bones or cancer.

Major medical insurance can be much more affordable than health insurance. With major medical insurance, you obtain coverage for costly medical procedures such as diagnostics, surgery and post-operative medication. Routine exams, vaccinations, and deworming, however, are not covered here.

If your horse kicks or bites someone and you want to avoid paying high litigation costs, you may consider obtaining personal horse owner liability insurance. This type of insurance protects you, should your horse cause damage or injury, and it also pays legal fees that you could incur because of negligence.

Another type of horse insurance is commercial liability insurance. If you own a stable yard or any kind of commercial property on which people work with horses or perform at shows, then you need to protect yourself from lawsuit costs, should people get hurt while on your property.

Find a reputable insurance company and a good equine insurance agent. This person will know the value of your horse and assess what types of insurance are needed. Make sure you have your agent explain the costs and benefits of each insurance policy, and get your price quotes and coverage information in writing. Also, talk with fellow horse owners, and get agent and company references.

If your horse is worth a lot of money you may decide it is worthwhile to purchase insurance to cover life or loss, with mortality insurance

How much is enough?

A rather sophisticated actuarial formula is used to calculate value and risks for equine insurance. In principle, it operates much like human life insurance underwriting. Basically, an equine insurance premium is based on the value of a horse. Other factors include the horse's age and intended uses. Jumpers and eventers may be more costly to insure than dressage horses. Racehorses and reining horses can demand higher-ticket policies than trail horses. Horses that travel to shows may have higher premiums as well. The location and stabling of your horse may also be a factor.

If your horse is worth a lot of money (more than, say, R10 000), then you may decide it is worthwhile to purchase insurance to cover life or loss, with mortality insurance.

Day-to-day medical insurance usually covers maintenance and basic veterinary procedures. You will need to enquire whether the equine medical insurance company will cover x-rays, ultrasounds, or other diagnostics, and any natural and homeopathic treatments, as these are not always covered by insurers. Major medical insurance protects the owner from massive surgical or hospitalisation expenses.

The only way to get an accurate answer, to fill out the appropriate form from an insurance company and request a quote.

Questions to ask

• What is the oldest at which I can insure my horse? (If you have a senior horse, you may have trouble finding major medical insurance. Many underwriters may even deny policy renewals for existing client horses, once those equines reach a certain age.)
• At what age can my horse be insured? Can foals be covered? (Some companies have a minimum age at which young horses can be insured. Insurance premiums also vary at certain ages.)
• If my horse has been treated for colic, can it be insured?
• If my horse has required colic surgery, can it be insured?
• Is my horse covered during transport?
• If my horse becomes ill or has an injury. What types of coverage are available?
• What about exclusions? (Detailed exclusions apply to virtually all equine insurance policies. For example, will your equine mortality insurance compensate you, if your horse dies from a snake bite or eating a poisonous plant?)
• Can I get major medical/surgical, surgical only, or loss of use coverage by themselves? How does loss of use coverage work?
• Are there any uses/disciplines which do not qualify for coverage?
• What do I need to do to get immediate insurance coverage for my horse?
• I purchased my horse a couple of years ago. Now that I have put some training into him, how do I determine my horse's value today?
• Is there a specific time limit for reporting a claim under my policy?
• How am I paid for major medical claims?
• ow do I lodge a claim?
• What if I need to report a claim after hours?
• What kinds of questions should I be expected to answer when I apply for an insurance policy?

If you run an equine related yard, ask questions such as these:

• I own a livery stable yard and some of my livery horse owners trade their labour for part of their stable rent by doing some DIY work themselves. How does this affect the yard's insurance?
• My stable yard puts on several shows each year. Are the participants covered under our yard's liability policy? Also, are the officials and judges covered under the yard's policy?
• If I am providing riding instructions on my farm or yard, what additional insurance coverage should I consider?
• I operate a livery facility, what liability insurance should I consider?
• Do I need coverage if all the horses at my stables are insured by their owners?

What will the insurance company require from you?

• Equine insurers, as a rule, require recent veterinary certificates and may also require confirmation of vaccinations before initiating coverage. They may ask for a vet to examine the horse and give it a pass of health and identification certificate.
• Many insurers will require that your horse be microchipped and/or tattooed or brandmarked for identification. They will need the details of these for their records.
• The company will also want to know the horse’s purchase price and date, age, gender, colour, breed if known, registration, the discipline/s of work he is doing, where the horse is kept, who is responsible for the horse, and all your personal identification, residence, contact and banking details.