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Oh, Baby!

Steps to protecting your prospect’s health AND your investment

Photo Credit: Stevie Bagdasarian

Deciding whether to insure a young show prospect can be a difficult decision and may feel like a gamble. One side of the coin is the desire to cover the 4-legged investment. The other side of the coin is… well, how much coin it’s going to take to do so. The only correct decision is NOT to gamble, but to think through the process and decide if and how much coverage is right for you.

Does equine coverage have a minimum age requirement?
Young show horses may be insured in-utero, as foals and yearlings, or as new show mounts. Determining when to start insuring your investment depends not only on the dollars you have already dedicated to it, but outside influences as well.

Can I insure a prospective foal?
Prospective foals and the recipient mares carrying them may be covered before birth. In-utero insurance would be wise if, for instance, a stud fee is not guaranteed or if you want to insure the brood mare’s pregnancy. Prospective Foal coverage begins once the mare is 42 days in gestation, and insurance extensions up to a year are also immediately available once four hooves are on the ground.

Insuring a prospective foal is not an inexpensive or easy venture. Rates run into the double digits and are determined by the breeding history of the dam and/or recipient mare. Too, extensive paperwork regarding health, reproductive status, and embryo transfer detailing is required for coverage. If you have a large up-front investment or risk, however, Prospective Foal coverage may be the right insurance choice.

When can I insure a new foal?
A foal can be insured at 24 hours after birth, depending upon a satisfactory veterinarian exam confirming both its good health and no complications in its delivery. The exam needs to be completed after the foal is at least 24 hours and has normal IgG and CBC testing results. After 31 days of age, a vet exam is not necessary.

The rates on foals 24 hours through at least 90 days old are higher than normal equine rates because risk is greater during this early developmental period. These rates vary by carrier based on age, breed, and discipline.

Usually, we advise assigning a value of at least $15,000 to a foal or weanling’s mortality/theft insurance so medical coverage can be added once the foal is 30 days old. An insurance value can also be determined by multiplying the stud fee by two or three, depending on the foal’s age. Of course, if the foal is a new purchase, the value is determined by the sale price. Note that if your young horse shows as a weanling, prize money won can be added to its value as well.

When should I increase my young horse’s coverage?
Once a young horse is brought into the barn for training, its insurance value rises. A justification of its new worth can be determined not only through its dam’s show records, but through comparisons of its siblings’ sales and show records as well.

Can I continue increasing coverage as my young horse ages?
If training begins as a two-year old, a young show horse’s value can be increased in year three by adding 50% of the previous year’s training costs as well as 100% of those costs in his third year. Too, if your young horse’s first show season is a stellar one, you can increase his insured value before that season ends. Yes, as your investment increases, so should your insurance coverage.

And, remember, if you sell your young horse at a show, you can increase its coverage to the sales price for a minimal cost while waiting on funds to be transferred to you. This protects not only your investment, but your investment returns.

Insurance is always a personal and financial preference and should be based on the circumstances and objectives of the owner. The basic rule of insurance is: bear the risk you can afford; insure the ones you cannot.

Good luck with your young show horse!

For more information about insuring your young horse, or if you have a topic you’d like to see covered in our blog, please contact us directly at: Equidae Insurance, Inc. 608 Virginia Street East, Suite 302 Charleston, WV 25301 p. (304) 346-1198 f. (304) 345-3535

Stacey Halloran, Agent
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