Insuring Thoroughbreds in the Horse Racing Industry

Owning thoroughbreds that participate in Australian horse racing contests does not only offers handsome financial returns, but also gives a sense of personal satisfaction. Like athletes, thoroughbreds used in horse racing competitions need to prepare over and over again especially when there’s an upcoming event. More often than not, equine trainings are associated with seemingly endless disbursements – veterinary bills, wages of trainers, farriers, feeds, maintenance costs and other related expenses. Since this venture can be an expensive pursuit, it is important that you insure your thoroughbreds just in case they got sick or injured, or when Mother Nature gets capricious.

Here are some examples of things that are covered by a typical equine insurance:

Commercial General Liability

Since government agencies and some insurance companies regard owning horses for racing competitions as ‘business’, having an insurance policy that covers Commercial General Liability (CGL) is a must. This CGL will insure you from legal accountabilities that may arise during the course of your business. On average, a CGL policy may cost at least $250 per annum depending on your liability limit.

Horse Owner Liability

When your horse destroyed a property or injured someone other than your horse’s care taker, a Horse Owner Liability will cover all the hospitalisation or repair costs. According to insurance professionals, this type of policy is a must-have for all thoroughbred owners. Without it, your ‘business’ may collapse when your horse inadvertently killed or injured someone.

Mortality Insurance

In general, there are two classifications of coverage under mortality insurance: Specified Perils and All Risks Mortality. Specified Perils policy is for deaths caused by fire, lightning, transportation and windstorm. Usually, it costs 0.5% to 1% of the value of your horse. On the other hand, All Risks Mortality policy covers almost all causes of death on horses. However, compared with Specified Peril policy, All Risks Mortality has a higher premium rate. On average, the rate is at least 3 percent.

Other kinds of policy coverage of equine insurance are workman’s compensation (for injured employees); care, custody and control insurance (shields individuals who are looking after someone else’s horse); and loss of use insurance (covers breeding issues, for instance, that may ensue in the future).

Since horses are among the animals that are very susceptible to accidents and injuries, insuring them is a must. That being said, thoroughbred owners must be wise on choosing the policies that their equine insurance should be able to cover.