Feature story from BloodHorse magazine regarding the Ins and Outs of Horse Insurance.
Your investment in a Thoroughbred is always at risk due to the very nature of the Thoroughbred. Many owners have experienced the catastrophic loss of a horse due to injury, illness or accidents. The timing of these unfortunate losses can happen anytime, anywhere, with any horse. The death of a horse can be an emotional loss to an owner. Financial loss only makes the loss worse.
Whether you invest in a yearling, horse of racing age, claim a horse off the track or purchase a broodmare, the money you invest is at risk the moment you take ownership of that horse.
In the sales ring you take full ownership and responsibly for the horse the moment the hammer goes down and you sign the sales ticket.
When you claim a horse, in most racing jurisdictions you take ownership and full responsibility the moment the gate opens in the claiming race.
When you make a private purchase either through an agent, trainer or on your own, ownership and responsibility is transferred to you at the time of the purchase.
Many times owners do not consider Insurance until after they make a purchase and give thought to how much money they have at risk. The wise and prudent owner considers insurance coverage long before making the investment and decides if insuring the investment is needed based on the amount invested and inherent risks. Like any insurance, the investment, cost of the insurance premiums and risks should all be considered when purchasing a Thoroughbred.
Owners should also consider liability coverage and be sure your trainer abides by the state workman's compensation laws.
Insurance companies that specialize in Equine coverage can advise the owner about various insurance options including coverage when making purchases at sales, claims at the track, private purchases and owner liability.