In our Ask Your Insurer series, equine insurance experts answer your questions about insuring Thoroughbreds for the breeding and auction realms.
Email us at [email protected] if you have a question for an insurer.
QUESTION: How can I best protect my investment in a horse in the event he or she is scratched from a sale due to an injury sustained in an under-tack show?
BRYCE BURTON: Insuring a horse that has previously been injured can be tricky, as the insurance company has the right to place an exclusion on the requested Full Mortality coverage. The exclusion would prevent a Full Mortality claim being paid on that horse should the death directly or indirectly result from that previously disclosed condition.
If the horse is injured during an under-tack show and a Full Mortality policy is already in place, not only is the horse fully covered, but the company will also agree to renew the insurance for the horse up until age 14, via the Guaranteed Renewal endorsement. This is why we advise our clients of the importance of placing Full Mortality coverage prior to the horse entering training.
QUESTION: Are there any special coverages to consider if my horse is traveling long-distance? A cross-country van or plane ride for example, or an international flight?
BRYCE BURTON: Equine Full Mortality, or All-Risk, Policies include coverage for the insured horse in the United States and Canada, including any transits therein. This coverage includes ground or air travel within the U.S. and Canada at no additional premium to you as the insured. So, if you're shipping from Kentucky to California, for example, and you have a Full Mortality policy in place, you're good to go.
If your covered horse is being shipped overseas, the company will apply a Transit Endorsement, and depending on the country, a Territory Extension Endorsement, which extends the Full Mortality coverage while abroad for an additional premium. As a result of some countries being high-risk, the underwriters will also offer Frustration of Import coverage, protecting against the horse not being granted access back into the country. It's best to reach out to your agent in advance, and they'll be happy to provide you with a quote for one-way or roundtrip Transit, Territory Extension, and Frustration of Import coverages.
Bryce Burton is a property and liability specialist for Muirfield Insurance. He is from Frankfort, Ky., where he grew up an avid race fan. His Thoroughbred racing fandom combined with a collegiate internship in the insurance industry, culminated in a start in the equine insurance field. Bryce has been with Muirfield Insurance since 2014, following his graduation from Transylvania University in Lexington.
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