Frequently Asked Questions

Is my tack covered when I go to a horse show?

Did you know that if your tack and equipment is not specifically listed on inland marine coverage in your farm policy, it's not covered when you go to a horse show? You're probably asking, "What in the world is ‘inland marine?’"

Inland marine is just a type of coverage for products transported over land — tack and equipment that's moving on and off your property.

Make sure you have a detailed listing of your tack equipment and that it's specifically listed in your policy. If it isn't scheduled, and you blanket that coverage, most carriers will set a limit of $1,500 per one item. We all know what a saddle, harness, or a buggy cost — and in most cases, $1,500 won't even come close to covering your loss.

What are exclusions?

Exclusions are those items listed as NOT being covered in a policy and they can be permanent or temporary. There is some overlap between the two, but there ARE differences. Exclusions depend on the carrier and the circumstance, so we recommend you read your policy and check what exclusions are being applied.

One of the most common question clients ask is if colic is an exclusion. The answer to that question is that it depends on the situation. Colic can be either a permanent exclusion OR a temporary one.

For more information on exclusions, contact your agent, or, if you’re a UPHA member, watch our insurance webinar on-demand now on the UPHA website: https://www.uphaonline.com/

Can exclusions be removed from a policy?

Three criteria are used to lift exclusions, and the first is simple: the horse is back to doing what it was doing before it got hurt. A second criteria is, if it is a show horse, it has gone to a show and competed at the same level as before the injury. The third, and easiest criteria is to have a qualified equine veterinarian go over the horse, look at the injury that occurred and validate that it has healed, and the horse is back to normal. Generally, if you meet one or two — hopefully all three — of those criteria, temporary exclusions can be removed from a policy.

What is private horse owner liability insurance and why do I need it?

Private horse owner liability coverage is similar to commercial liability insurance but is for individuals owning up to 10 horses. The best aspect of this insurance is that coverage can be added for tack and equipment. Many boarding barns require their clients have a private horse owner liability policy, not only to insure tack and equipment, but also for coverage if something unforeseen happens -- like a horse getting loose at a show. Unfortunately, in the event of a lawsuit, a claimant may possibly name both the trainer and the owner of the horse in litigation. So, it’s good coverage to have and is relatively inexpensive.

Should I report my horse’s medical maintenance to my insurance company?

Routine maintenance should be reported on your annual equine mortality renewal forms as well as any maintenance which has been done to a horse that you’re purchasing. An exclusion will NOT be put on your policy because you’re performing routine maintenance. Insurance companies understand that sports medicine has evolved a lot over the years, and the support we give our horses today to keep them in top form are very different than in the past. In the past, injections were only done because of an injury. Today, we use them to prevent injuries. Insurance companies today want to know what you are doing to keep your horse healthy.

How do I report my horse’s death to my insurance company?

Some topics may be unbearable to imagine, but before the unthinkable happens, it’s best to be prepared. If your horse gets hurt or something happens, of course you must do everything in your power to save the life of that horse, regardless of the time of day or the circumstances. Your first course of action is to immediately contact your vet. The second step is to contact your agent or your carrier, both of whom should be available to you 24 hours a day.

If your horse, unfortunately, must be euthanized, the best practice is to always obtain carrier authorization. If you don't obtain carrier authorization prior to euthanizing that horse, you could jeopardize your coverage.

Once the horse is euthanized, you’ll need to secure a death certificate and your veterinarian must perform a necropsy. Along with this detailing, you’ll file a “proof of loss statement” with the carrier within 60 days (or within 90 days if asking for coverage of a theft). This statement is the amount for which the horse was purchased, and any detailing used to increase its coverage through a Justification of Value form.

When you purchased the horse, you received a receipt in the form of a canceled check or a copy of the wire transfer or money order. Keep that copy in case you need it to receive your full mortality payment. Sometimes we must go back and get affidavits from the sellers, but that is added time to an already lengthy process.

Make sure you have your agent's phone number and the carrier’s hotline number programmed in your phone because accidents usually, of course, happen at night. This simple step helps avoid panic and confusion when that event occurs.

Can I get a tax deduction when I donate my horse?

When you donate your horse to a nonprofit group, you know where it’s going and the care it will receive, and in many cases, you can also get a tax deduction.

Make sure the organization you choose to receive your horse is certified by the IRS as a nonprofit 501(c)3 organization. Keep all records, including how the horse’s value was determined, and obtain an appraisal from a qualified appraiser if the horse value exceeds $5,000. The American Society of Equine Appraisers website (www.equineappraiser.com) is helpful in this regard.

Some exceptions reduce or eliminate the charitable deduction for a donated horse, including if the charity does not use the horse to further its exempt purpose. For example, if you give a horse to the United Way, and they turn around and sell that horse and keep the proceeds, that does not qualify for a fair market value deduction.

Also note that additional tax filings are required dependent on the value of the donated horse.

Always do what's best for your horse, but potential options are out there for you to be tax efficient about it.

Before making any decisions about donating your horse, or for more information on charitable tax deductions, contact your financial advisor.

Are all coverages created equally?

The short answer? Absolutely not. Here’s some points to review in your own equine coverage.

• Ask your agent questions regarding the carriers she or he represents. The top carriers have competitive rates and have a long history in the business of equine insurance. Make sure the insurance carrier of your coverage is ranked A+ in stability and financial strength rankings.
• American carriers are covered by a national guarantee, so during these storied times, your insurance carrier should be based in the United States.
• Check the limits on your medical coverage. Policies with time and financial limits may not be in your best interest. Sub limits on treatments like diagnostic testing should also be reviewed. One procedure alone could tap out your coverage.
• Be aware of your exclusions and when or if they expire. Different policies have different stipulations, so make sure your agent keeps you posted in a timely manner.

For more information on your equine insurance coverage, contact your agent, or, if you’re a UPHA member, watch our insurance webinar on-demand now on the UPHA website: https://www.uphaonline.com/

Must a trainer have coverage for OTHER owners’ horses?

A standard general liability policy excludes personal property, such as horses in your care, custody, and control. So, if you train, board or breed horses, you’re legally responsible for those horses and need liability coverage. Care, Custody and Control (CCC) covers the amount you’re legally obligated to pay from equine losses. CCC covers transportation of horses, but it EXCLUDES any transportation you do for hire. So, if you’re transporting a horse for a fellow trainer, your CCC will not cover those horses. Some common CCC claims include a horse getting injured while being worked, a gate left open, a horse injured in transport, employee negligence and improper care of a horse.

What is Workers’ Compensation?

Workers’ Compensation is a coverage that's been around for many years, providing coverage and protection for employees from workplace injuries and occupational diseases. Workers’ Comp fully covers employees for their medical expenses, including hospital, surgeries, pharmaceutical expenses, and rehabilitation. There's no deductible and there's no max payments. Workers' Compensation also helps employees with a loss of income. Say an employee can no longer report to work or is out for a month because of an injury. Workers’ Comp would cover his or her lost wages as well as cover an on-the-job injury. Workers’ Comp provides a death benefit as well.

Do barn waivers protect me?

Barn waivers can be very powerful documents and can successfully protect the trainers and barns for which they are intended.

Except when they don’t. Waivers usually won’t hold up in court for three reasons:

1. They’re not worded properly. Barn waivers should have language that complies with what the home state requires. If waivers are improperly drafted, they can’t be enforced.
2. They’re not signed correctly. Under the laws of almost every state, people who are not of legal age cannot sign documents. The person signing the release for the minor must be the parents or the legally appointed guardian.
3. Some states have laws that don’t enforce them. Liability is a hot button in many states, and barn waivers cannot be relied upon to help in a conflict situation if “not worth the paper they’re printed on.”

Before making any decisions about writing or using waivers, make sure you contact your attorney.

What information should I have on-hand when procuring insurance coverage for my horse?

Keep in mind your objective and budget. Do you just want to cover your purchase investment (mortality coverage) or are you interested in protecting yourself from possible future medical costs (mortality and medical coverage)? The horse’s name, age, breed, discipline, and any known past medical issues are also needed to complete the quote application. As a bonus to Equidae clients, all required information can be submitted on-line with the Equine Mortality Application found on our Forms page under “Equine” to help make the coverage process even easier.

Is a veterinary exam required for equine insurance coverage?

Horses valued over $100,000 and foals under 30 days old all require an exam be performed by a licensed veterinarian. Some insurance carriers also require a veterinary exam on horses aged 15 to 20 years old and valued over $50,000. Veterinary exam forms are available online on our Forms page under “Equine” and may be completed by the attending veterinarian using a digital signature.

Why is insuring your horse important?

A horse owner should consider insuring when they are unable to financially replace or heal their horse because any risk transfers to an insurance company for pennies on the dollar. You insure your house and your car. Why not your horse? Insuring is a personal preference and should be based on the circumstances and objectives of the client. The basic rule of insurance is to bear the risk you can afford; insure the ones you cannot.

When is a horse considered uninsurable?

For horses to be insurable, they must be sound and healthy and used for their intended purpose – whether a show horse or a brood mare. If a horse had a previous medical condition in the past, it doesn’t necessarily preclude them from insurance in the future. Also, age determines a horse’s insurability.  Most carriers will not insure horses prior to 24 hours or after 20 years of age. Just like your own life and health coverage, insuring your horse is a process unique to the horse itself. By talking to your agent and asking questions – ALL questions are good questions! – you’ll be better informed to decide the best insurance coverage for your horse, your passion, your investment.

For answers to any of YOUR insurance questions, call us at 304.346.1198.
If you’re a UPHA member, watch our insurance webinar on-demand now on the UPHA website: https://www.uphaonline.com/