At a Glance: Guide to Horse Insurance
- The Core Risk: Owning or competing with horses involves high financial and emotional stakes. Beyond the initial purchase price, owners face risks from life-threatening conditions like colic, accidental injuries, and the possibility of being sued for damage the horse causes to others. Without cover, the cost of advanced veterinary surgery or a liability claim can be overwhelming.
- Resilience Strategy: Accurate valuation and discipline declaration are the foundations of a solid policy. Insurers need to know exactly what the horse is used for, whether it’s low-risk hacking, higher-risk hunting or eventing. It is also vital to keep health records up to date, as previous injuries can affect future claims for veterinary fees.
- Risk Mitigation: A comprehensive policy typically covers Mortality (loss of the animal), Vet Fees, and Public Liability. Key specialised additions include “Loss of Use,” which pays out if the horse is permanently unable to perform its intended role, and “Life-saving Surgery” cover for emergency procedures such as joint flushes or colic operations.
- Pro-Tip: Avoid over-insuring by only covering the activities you actually participate in. You can further reduce premiums by opting for a higher excess or “co-insurance,” where you pay a small percentage of the vet bill. However, never under-insure; if the sum insured is too low, insurers may reduce your payout proportionally.
Insurance can be complex, and this is no less true in the UK’s Horse Insurance market; there are multiple equestrian insurance policies, insurers, and levels of cover – all of which need to be considered. Below, McClarrons horse insurance specialists have compiled some valuable, need-to-know knowledge, in what we are calling: McClarrons’ Guide to Horse Insurance.
Here we will address some frequently asked questions surrounding horse or equestrian insurance.
What does horse insurance cover?
Horse insurance generally covers the following:
- Mortality – if your horse dies, you are compensated for the loss based on the sum insured (usually the market value of the animal)
- Vet Fees – costs for veterinary work related to injury caused by an accident or incident (as long as the horse has not had any previous with the injury in question)
- Loss of Use – this compensates you if the horse is “written off” (i.e. declared “not fit for purpose”) by a veterinary surgeon due to an injury or syndrome and you lose the declared value of the horse, meaning that the horse cannot be resold or used for profit
- Life-saving Surgery – this covers veterinary assistance/surgery if the horse’s life is at risk, for example in the instances of Colic or joint flushes
- Public Liability – this covers you for damage to a Third Party or a Third Party’s property, caused by your horse
- Theft – this covers you for the sum insured of the horse should the animal be stolen via forced entry or from a field if a horse has escaped
- Personal Accident – this provides cover for the medical costs involved should you have an accident caused by your horse or whilst riding your horse.
Is horse insurance worth it?
In short, yes horse insurance is worth it. However, there are various things you need to consider. If you spend money on a horse and it is considered an investment or a personal purchase, it is worth insuring in case of an unfortunate loss or damage to the horse.
In particular though, cover can be significant if there is ever a need to claim for Loss of Use, which covers you in the event your horse can no longer take part in the activities it was bought and insured for, such as competitions or breeding, because of an injury or illness.
How to insure a horse
When arranging horse insurance, you will be asked for the following information:
- Name of the horse being insured
- Date of Birth of the Horse
- Sex of the horse
- The pedigree of the horse
- Sum insured – this is the value of the horse, and if of a high value, justification of value will be requested
- Discipline – you should make your insurance provider aware of the activities you plan to take part in with the horse, for example, dressage, show jumping, hacking, hunting, etc.
- Owners Details
- Keeper – details of where the horse is kept if different from correspondence address, e.g. livery yard etc.
We would always recommend speaking to a specialist equine insurance provider when looking to insure your horse. There are various online solutions but working with someone who really understands the nuances of equine insurance is invaluable.
Which horse insurance do I need?
The type of horse insurance you need will depend on several factors, including the level of cover required, any long-term health conditions the animal may have, any previous/existing claims, the age of the horse, etc.
In addition to specifics relating to the horse(s) itself, if you are running an equine business, rather than someone who owns a horse purely for personal leisure, such as a riding school, or polo club, or if you are a racehorse trainer, horse transporter, etc., you will require a commercial equine policy. For this, more extensive information about the business, its operations and activities will be required.
For guidance on what specific types of horse cover you might need, please contact McClarrons.
Who is the best horse insurance company?
The best insurer and horse insurance policy will depend entirely on the level of cover and the specific risk factors involved. Our equine specialists have years of experience in the sector and are aware of the risks involved in owning and competing horses.
As an independent insurance broker, we work with numerous specialist insurers to make sure we are providing our clients with comprehensive and valuable cover, specific to their individual requirements.
How much does horse insurance cost a year?
Again, as you would expect, the cost of your horse insurance per year will depend on the cover taken, the specific horse and/or business and its activities. As well as other various risk factors.
However, there are things to consider which could help reduce the cost of your horse insurance cover, including:
Make sure you don’t overinsure. For example, if your horse isn’t going to partake in hunting but does hack, make sure it is not incidentally covered for hunting, which is seen as a higher-risk activity and will come at a higher premium. In addition, only insure for what your horse is currently worth, as insurers compensate based on the incident and a percentage of the total sum insured, depending on the horse’s age and how long it has been insured in the case of mortality
Increase the excess paid for a claim. Some horse owners can afford to pay for smaller veterinary treatments; it is the bigger, more expensive ones that require insurance. Therefore, if you can pay a £500 excess as opposed to £100, taking this option on your equine insurance policy could reduce your premium considerably. Another similar option is co-insurance, where you would pay a percentage of the vet treatment cost with the remaining percentage covered by your insurer
Don’t insure for things that are already covered. For example, you may have Liability insurance included in the membership of your equestrian club and so don’t need to insure for this cover separately
Just as we’ve warned against overinsuring, it is vital to ensure you do not underinsure your horse. If in the event of a claim, your insurer finds out that your horse has been insured at less than their valuation or its true value, they have the right to apply the ‘condition of average’ and reduce any claim settlement by the same proportion by which the horse it has been underinsured. Therefore, if there is a complete loss of your horse, insurers will not pay for what a full replacement would cost.
How McClarrons can help you with specialist equestrian insurance
Our specialist equine insurance team at McClarrons all have a personal involvement in equestrian sports and so understand the risks that need to be considered and covered. This means you can rely on the advice and cover we provide at McClarrons. Our Equine Insurance Account Executive, Charlie Gundry, would be delighted to answer any queries you have surrounding your equine business insurance, or to carry out a complimentary insurance review for you. You can contact him on 07701 281729 or at charlie.gundry@mcclarroninsurance.com.
For more horse-related advice visit The British Horse Society (BHS).
