Equine Insurance

Example

“The thoroughbred racehorse was insured for $2 million under an Equine Insurance policy that covered both mortality and loss of racing ability due to injury.”

Memory Tip

Think 'Horse Protection Policy' - it's specifically designed to protect your equine investments from hoof to mane.

Why It Matters

Horses represent significant financial investments that can be lost instantly due to injury, illness, or death. For professionals in racing, breeding, or training, equine insurance provides essential protection against potentially devastating financial losses that could end careers or businesses.

Common Misconception

Many horse owners believe homeowner's or farm insurance adequately covers their horses, but these policies typically have very limited livestock coverage. Equine insurance provides specialized coverage for the unique risks and high values associated with horses that standard policies don't address.

In Practice

A show jumper purchases equine insurance for her $150,000 competition horse with full mortality coverage and loss of use benefits. When the horse suffers a career-ending leg injury, the mortality portion pays nothing since the horse survived, but the loss of use coverage pays $120,000 (80% of insured value) because the horse can no longer compete. The owner also receives $15,000 for veterinary bills, allowing her to retire the horse comfortably and purchase a new competition mount.

Etymology

The term combines 'equine' from the Latin 'equus' meaning horse, with insurance, and became formalized as horse racing and breeding became major commercial enterprises in the 18th and 19th centuries.

Common Misspellings

Related Terms

More in insurance

Other insurance terms you should know

See Also