The question comes up often and the answer can be as varied as the individual asking. Perhaps the question should be... Can I afford not to insure my horse?

Horse insurance is intended to provide coverage to protect the owner against the possibility of losing the horse to a long list of causes. It essentially provides an economical way for individuals to protect the investment made in the animal itself, which can be substantial.

So what are the options available to horse owners..

Horse insurance is available in two basic configurations (forms). The first is called Specified Perils. As the name implies, the horse’s life will be insured for death arising from a "specific" list of causes (perils). This list varies amongst insurers, but typically includes Fire, Lightning, Theft, Impact by a vehicle, Transport, Accidental shooting, Entrapment, Collapse of a building etc. True Specified Perils policies do not provide coverage if the horse dies from sickness and because of this exclusion, are very inexpensive. Coverage can be obtained through stand alone policies and/or can be obtained under farm property policies by way of extension.

The second type of life insurance available for horses is called Full Mortality, which, again as the name implies, covers death, but is far more comprehensive than Specified Perils and will cover losses arising from virtually any accident or sickness including humane destruction by a Veterinarian. As you might expect, Full Mortality insurance is more expensive than Specified Perils, but at this point in time, is still priced within the budget of most equestrians. In order to initiate coverage, it is probable that the insurer will need a Veterinarian Certificate to confirm the health of the horse before coverage can be placed. Eligibility for this type of insurance is more restrictive as well based on age, medical history and in some cases, the use of the horse.

Beyond the horse itself, some programs can also offer extensions for tack and equipment, and even Medical and Surgical costs can be covered under various optional endorsements.

From our perspective, the costs of this type of insurance are minimal when compared to the overall costs of maintaining a horse. Given that it will probably cost you more to take your horse to one show a year, or board it for even one month, it is a sound investment and is no longer only suitable for the expensive, high performance competition horse. All owners of horses can find ways to economically protect themselves. The best advice is to talk with a broker who has experience in this type of coverage. There are many strategies that can be used to make it work for you.

Mike King is a general insurance broker, operating  Intercity Insurance Services Inc. in Aurora, Ontario and specializes in equestrian insurance programs including Horse Mortality, Farm Property and Equestrian Liability.