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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 brochure 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:
- Mortality - paid
if the horse dies
- Loss of Use - paid
if horse is permanently incapacitated for its intended use or purpose
- Major Medical - like
health insurance, offsets costs of catastrophic veterinary care
- Surgical - policies
which cover only specific procedures such as colic surgery
- Breeding Infertility - covers
stallions or mares for reproductive failure
- 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:· Read
the contract thoroughly before you sign it.
- Ask the insurance
representative to explain any words, phrases or provisions you do not understand
completely.
- Know your responsibilities.
What is required should your horse fall ill, become injured or die?
- Understand any
specific guidelines for emergency situations. A crisis is not the time to be
trying to interpret your policy's fine print.
- If euthanasia
is recommended, know what steps must be taken in order for a claim to be valid.
- Make a list of
questions to ask your insurance agent or company.
- Define your needs.
- 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 prior 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 the age, sex or potential value of a horse. Four
criteria are given to help make this determination:
- Is the condition
chronic and incurable?
- Has the immediate
condition a hopeless prognosis for life?
- Is the horse a
hazard to himself or his handlers?
- 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
- Know the time
period for reporting any health problems to your insurance carrier.
- Determine if you
must have prior approval for any elective surgery or medical procedures.
- Find out what
documentation is required of you and your veterinarian in making an application
or filing a claim.
- Know if your horse
is covered when traveling out of state or out of the country.
- Define for your
veterinarian the purpose for which a horse is being insured, for example, as
a performance horse or as a breeding animal.
- Understand your
financial obligations regarding veterinarian examinations, laboratory tests,
necropsies, or other procedures which may be required by the insurer.
- 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 brochure was
developed by the American Association of Equine Practitioners through a grant
from Bayer Corporation, Animal Health. Bayer
Corporation, Agriculture Division, Agriculture Division Animal Health,
Shawnee Mission, Kansas 66201
 ©1998,
Bayer Corporation
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