Understanding Equine Insurance
Guidelines You Should Consider
Understanding Horse Insurance Responsibilities
Whether a horse is purchased for personal or business reasons, ownership
represents a significant investment of time, money, and resources.
While no one likes to think about the potential for tragedy, horses seem
to be prone to illness, accidents, and injury. Should some peril
befall your horse, nothing may ease the emotional burden, but wise planning
can help reduce the economic impacts. Many reputable insurance companies
offer policies to help protect owners from financial loss should a horse
fall ill, become incapacitated or die. Because individual policies
vary so much from company to company and circumstance to circumstance,
it is beyond the scope of this site to explain how to find the right coverage
to meet your needs. What's important to note is that each policy
has its own terms, conditions, and requirements which may necessitate action
from you, your veterinarian and your insurance company.
Types of Coverage
Common types of coverage available for horses include but are not limited
to:
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Mortality - paid if the horse dies
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Loss of Use - paid if horse is permanently incapacitated for its intended
use or purpose
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Major Medical - like health insurance, offsets costs of catastrophic veterinary
care
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Surgical - policies which cover only specific procedures such as colic
surgery
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Breeding Infertility - covers stallions or mares for reproductive failure
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Specified Perils - includes any number of things such as lightning, fire
or transportation
Know Your Policy
Insurance policies are legal contracts between the underwriter (the
company) and the insured (horse owner). To better safeguard yourself
and your horse:
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Read the contract thoroughly before you sign it.
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Ask the insurance representative to explain any words, phrases or provisions
you do not understand completely.
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Know your responsibilities. What is required should your horse fall
ill, become injured or die?
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Understand any specific guidelines for emergency situations. A crisis
is not the time to be trying to interpret your policy's fine print.
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If euthanasia is recommended, know what steps must be take in order for
a claim to be valid.
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Make a list of questions to ask your insurance agent or company.
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Define your needs.
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Comparison shop. Besides cost, buyers should look at the longevity
and reputation of both the agency and the insurance carrier.
Health Certificates
Most equine insurers require a current health certificate signed by
a veterinarian before a policy will be issued for a horse. Remember,
this is a legal document. You should not ask nor expect your equine
practitioner to make claims about a horse he or she has not verified through
a thorough physical examination.
A veterinarian cannot simply "take the client's word for it", or complete
the requested information based on proper knowledge of the horse.
The certificate requires that determination of the animal's health be made
on the day of the examination.
Your veterinarian will be compensated for the exam and any tests that
may be required to accurately and adequately complete the insurance forms.
The exact requirements of the exam may depend upon the type of coverage
being applied for. A breeding infertility policy would require a
different type of exam than a simple mortality policy, for example.
Determining Roles
A veterinarian cannot attest to the insurability of a horse.
Your veterinarian can only respond to questions of which he or she has
direct knowledge, reporting the medical facts to the best of his or her
ability. he or she will be asked to positively identify the horse
for which the application is being made. However, your equine practitioner
has no role in determining the insurable value of a horse. That is
a matter for the insurance underwriter and the owner to establish.
Regardless of the circumstances, never ask or expect your veterinarian
to report a claim to the insurance company. This is your responsibility
as the owner. The veterinarian may be asked to supply necessary medical
documentation.
Do not expect your equine veterinarian to be an insurance expert.
If you have questions regarding your policy, ask your insurance agent rather
than your veterinarian.
If there is something that your insurance company requires, make sure
your veterinarian receives the request in writing.
If a question or dispute should arise regarding a claim, it is a matter
for you and your insurance company to resolve. It is not the responsibility
of your veterinarian.
Euthanasia
Euthanasia is the intentional destruction of a horse for humane reasons.
For an insurance claim to be valid, many companies require advance notification
and prior permission -- except under the most extreme conditions.
In some cases, the insurance company may wish to seek a second opinion
before a horse is euthanized.
The American Association of Equine Practitioners has established guidelines
that state the justification for euthanasia should be based solely on medical,
not economic considerations, regardless of age, sex or potential value
of a horse. Four criteria are given to help make this determination:
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Is the condition chronic and incurable?
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Has the immediate condition a hopeless prognosis for life?
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Is the horse a hazard to himself or his handlers?
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Will the horse require continuous medication for the relief of pain for
the remainder of his life?
Learn what your insurance company's policies are regarding euthanasia.
Are they in keeping with the AAEP's guidelines, and do they protect horses
from prolonged or inhumane pain and suffering?
Other Considerations
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Know the time period for reporting any health problems to your insurance
carrier.
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Determine if you must have prior approval for any elective surgery or medical
procedures
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Find out what documentation is required of you and your veterinarian in
making an application or filing a claim.
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Know if your horse is covered when traveling out of state or out of the
country.
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Define for your veterinarian the purpose for which a horse is being insured,
for example, as a performance horse or as a breeding animal.
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Understand your financial obligations regarding veterinarian examinations,
laboratory tests, necropsies, or other procedures which may be required
by the insurer.
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Know the exact value of your policy and how it will be paid. For
instance, a "loss of use" settlement might be different from a mortality
payment if a horse is considered to have "salvage value".
Industry Integrity
You, your veterinarian and your insurance company each have a role
in maintaining the integrity of the horse industry. Regardless
of Insurance coverage, the horse's welfare must always be at the forefront
of any decision being considered on its behalf.
This information was developed by the American Association
of Equine Practitioners through a grant from Bayer Corporation.
copyright@1998 Bayer Corporation.