Does horse insurance cover racehorses, breeding and studs?

Horse insurance can cover pleasure horses, racehorses and breeding horses, but they may need different types of cover.

Once racing, breeding or commercial activity is involved, specialist bloodstock or business insurance may be required.

Can you insure a racehorse?

Yes.

But racehorses do not fit every standard horse insurance policy.

Some general horse insurance products exclude horses used for racing.

Specialist bloodstock insurance exists specifically for racing and breeding horses.

So the main question is not whether a racehorse can be insured.

It is whether you are looking at the right type of insurance.

Why are racehorses different?

Racehorses can have a different combination of value and risk from an ordinary pleasure horse.

An insurer may need to understand things such as:

• the horse's value
• racing history
• age
• ownership
• current health
• training
• transport
• breeding potential

There can also be syndicate or part-ownership interests to consider.

Specialist bloodstock insurance is designed around these types of risks.

What is bloodstock insurance?

Bloodstock insurance is specialist insurance for valuable racing and breeding horses.

The starting point is often mortality cover.

Depending on the policy and horse, cover may also be available for:

• theft
• transit
• stallion infertility
• loss of stud income
• unborn or prospective foals
• life-saving surgery

Not every policy includes every benefit.

Some risks are individually underwritten.

Can a breeding horse have normal horse insurance?

Sometimes.

Breeding on its own does not automatically mean a horse needs a highly specialised bloodstock policy.

A pleasure mare that is also used for breeding may have fairly straightforward requirements.

A valuable broodmare, commercial stallion or thoroughbred breeding operation can have much more specialised financial risks.

The right type of cover depends on what you actually need to protect.

What cover can a breeding horse need?

Mortality

This can cover the insured horse if it dies from an insured cause or has to be humanely destroyed within the policy terms.

Stallion infertility

Specialist cover may be available if an insured stallion becomes permanently infertile or unable to perform stud duties because of an insured accident, illness or disease.

This is different from ordinary mortality cover.

First-season infertility

A first-season stallion may need a different form of protection where infertility becomes apparent during its first breeding season.

This is highly specialist insurance.

Loss of stud income

A stallion may still be alive but temporarily or permanently unable to generate expected stud fees.

Some specialist insurance can address this type of financial loss.

Unborn foal cover

Specialist insurance can also be available for prospective foals before and shortly after birth.

The exact point at which cover starts and ends depends on the policy.

What about a horse stud?

A horse stud creates two different questions.

The first is the horses.

The second is the business.

Bloodstock insurance can protect valuable horses.

But a breeding business may also have risks involving:

• visitors
• employees
• buildings and stables
• equipment
• professional services
• business income
• horses owned by other people

That can mean looking at business insurance as well as bloodstock insurance.

Do not assume insuring the horses automatically insures the whole stud operation.

Does standard farm insurance cover a horse stud?

It may cover some parts of the property or business, but it should not be assumed to cover specialist bloodstock risks.

A farm policy and a bloodstock policy solve different problems.

If you run a horse stud, check separately how your cover treats:

• high-value horses
• mortality
• breeding risks
• foals
• liability
• stables and buildings
• business income
• horses in transit
• horses belonging to other people

You may need more than one type of cover.

How is the value of a racehorse or breeding horse worked out?

Specialist horses can be difficult to value.

Evidence may include:

• purchase price
• auction results
• pedigree
• race or performance history
• breeding record
• veterinary information
• comparable sales
• professional valuations

For higher values, you may be asked to support the amount you want to insure.

Do not assume the insurer will automatically accept your chosen value.

What if you only own part of the horse?

Part-ownership is common in racing.

Insurance can sometimes be arranged around an individual ownership interest rather than the entire horse.

Tell the provider exactly how the horse is owned when asking for cover.

What should you tell the insurer?

Be clear about whether the horse is:

• racing
• in training
• retired from racing
• used for breeding
• standing at stud
• a broodmare
• a foal or yearling
• syndicated
• used for other equestrian activities as well

These details can change the type of cover you need.