Agriculture Reference
In-Depth Information
MEDICAL INSURANCE
Medical insurance usually covers the cost of surgery and medical treatment due to accident,
illness, or injury. Medical insurance is generally available only for horses already covered
by a full mortality policy. Although these policies have a large deductible and high premi-
ums, most major medical policies pay the entire cost of the treatment (over the deductible)
up to the policy amount. Medical insurance requires an application and a completed and
signed veterinary exam form.
Surgical-only insurance
is less expensive than major medical because customarily it
pays only for the veterinarian's surgery bill in nonelective surgery, such as colic. In ad-
dition, some associated costs such as portions of X-rays and drugs might be paid. But
anesthesia and board probably won't be covered, resulting in a net coverage of the total
expenses of only about 50 percent. Often, elective surgeries such as castration are not
covered. Policy costs are a flat fee per horse per year. There is usually a small deductible
and a maximum claim amount.
LIABILITY INSURANCE
Your homeowner's policy will usually cover public liability and property damage if the
horse use is “recreational.” But be sure you understand what your particular policy means
by the difference between “recreational” horse use and a horse business. A business is in-
dicated when you file a Schedule F (Farm) or a Schedule C (Business) with the IRS. Often,
however, even if you consider yourself a hobby farmer, the insurance company may treat
you as if you were running a horse business. If one of your horses is used for showing,
parades, or rental, or if your facilities are used for boarding, training, instructing, or breed-
ing, you may have to obtain additional liability coverage with a supplemental business
policy.
It is important that all horsekeepers be covered by a personal or professional liability
policy as appropriate for the situation. Homeowner's policies in some states might cover
the owner if someone was injured on the property or if a horse got out on the road and dam-
aged a vehicle or injured a person. If you run a small lesson or training business at your
acreage, you should be sure you have adequate liability coverage. To decide whether addi-
tional liability insurance is appropriate for your horse farm or ranch, contact various insur-
ance companies and review their policies. Read the terms carefully and ask the agents how
various scenarios would play out. Use examples of situations you would most likely en-
counter at your farm and ask whether you would be covered. Before you invest any money,
be sure your insurance agent is experienced, reliable, and qualified.
