Developing an Insurance Programme

Firstly, it is important with whatever type of insurance you are thinking about to obtain the services of a recognised specialist in that particular insurance field.

For example, if you are insuring a single engine plane, it's no use asking a non-specialist aircraft insurer to cover your asset. You are only asking for trouble.

The same applies to horse or livestock insurance. The specialist, based on years of experience, knows the exact wordings and policy type for your needs. He/she will know a lot about the type of claims you can expect and how to settle them.

Having selected a specialist insurer, you then have to examine the level of loss that you can afford to avoid financial hardship. For example, the sum insured may represent the replacement cost of your animal or less (remembering that the sum insured should not exceed the horse's reasonable market value).

Animals which you are relying on to provide cash income, should also be insured for their estimated sale value. For example, weanlings, yearlings, stallions and stallion income. Valuable broodmares are like a factory and their progeny can provide income year after year. So insurance is important to replace them should a loss occur.

Be careful not to over insure as this will lead to disputes and unnecessary costs.