Insurance Glossary

Agreed Value Coverage

The dollar amount established when the policy is written, representing the horse's insured value and the maximum payout in a mortality claim.

All-Risk Coverage

A mortality policy that covers death from any cause not specifically excluded. The broadest and most common form of equine mortality coverage.

Annual Limit Coverage

Maximum amount the insurer will pay during one policy period. Once exhausted, the owner is responsible for all remaining costs.

Appraisal Underwriting

Formal evaluation of a horse's value by a qualified appraiser. May be required for high-value horses, typically $25,000+.

Application Underwriting

The form submitted requesting coverage. Requires details about breed, age, sex, use, value, health history, and location. Misrepresentations may void coverage.

Binder Contract

Temporary coverage agreement while the formal policy is being issued. Confirms coverage is in effect before the full policy is delivered.

Bill of Sale Underwriting

Document recording purchase price and transfer of ownership. Primary evidence of value for insurance purposes.

Care, Custody & Control (CCC) Liability

Liability coverage for damage to horses belonging to others while in your professional care. Essential for trainers, boarders, and haulers.

Certificate of Insurance (COI) Contract

Document confirming a policy is in force. Often required by facilities, event organizers, and commercial haulers.

Claimant Claims

The individual or entity filing an insurance claim.

Coggins Test Underwriting

Blood test for Equine Infectious Anemia (EIA). Required annually for transport, competition, and often for insurance applications. A positive Coggins can make a horse uninsurable.

Co-Insurance (Co-Pay) Contract

Percentage of eligible expenses paid by the policyholder after the deductible. Example: 80/20 means insurer pays 80%, owner pays 20%.

Colic Medical

Abdominal pain in horses. Colic surgery is the most common high-cost equine insurance claim, with episodes costing $8,000–$17,000+.

Comparable Sales Underwriting

Recent sale prices of similar horses used to establish or verify a horse's insured value.

Covered Cause Coverage

An event or condition for which the policy provides coverage. All-risk policies cover any cause not specifically excluded.

Deductible Contract

Amount paid out of pocket before reimbursement begins. May be per incident or per policy period. Typical range: $150–$500.

Diagnostic Imaging Medical

X-rays, ultrasound, MRI, CT scans. Typically covered under major medical policies.

Effective Date Contract

The date coverage begins. Pre-existing conditions are determined relative to this date.

Endorsement Contract

An amendment to the policy that adds, removes, or modifies coverage. Used to customize a standard policy to specific needs.

Equine Activity Liability Statute Liability

State laws that limit liability for equine professionals and sponsors for injuries from "inherent risks." Does not eliminate all liability.

Exclusion Coverage

A condition, cause, or circumstance the policy does not cover. The most common source of claims disputes.

Humane Destruction Claims

Euthanasia to prevent unrecoverable suffering. Covered by mortality insurance when authorized by the insurer.

Infertility Coverage Coverage

Pays when a stallion becomes permanently unable to breed. Separate from mortality. Requires documented semen evaluations.

Inherent Risk Liability

Risks intrinsic to equine activities that cannot be eliminated. Equine activity liability statutes protect against claims from inherent risks.

Insurable Interest Contract

A financial stake in the horse's wellbeing. Owners, lessees, lienholders, and partners may all have insurable interest.

Insured Use Underwriting

The declared primary use of the horse on the insurance application. Critical for both underwriting and Loss of Use claims.

Laminitis Medical

Inflammation of the laminae in the hoof. Can be career-ending or fatal. Pre-existing laminitis is commonly excluded.

Lay-Up Coverage

A reduced premium rate during periods when a horse is not in active use (resting, recovering). Not all carriers offer this.

Limited Perils Coverage

Restricted mortality covering only specified causes (fire, lightning, transport accident). Excludes illness and disease. Often the only option for older horses.

Live Foal Guarantee Coverage

Insurance protecting the stud fee if a breeding doesn't produce a live foal. "Live foal" typically means standing and nursing within 24 hours.

Loss of Use Coverage

Pays 50–60% of insured value when a horse becomes permanently unable to perform its insured use. Requires veterinary confirmation of permanence.

Major Medical Coverage

Comprehensive medical coverage reimbursing veterinary expenses for illness or injury including diagnostics, hospitalization, and medications.

Material Misrepresentation Underwriting

False or misleading information on an application that, if known, would have changed the underwriting decision. Can void the entire policy.

Mortality Insurance Coverage

The foundational equine coverage. Pays the agreed value upon death from covered causes. Equivalent to "life insurance" for horses.

Named Exclusion Underwriting

A specific condition excluded from coverage based on the horse's health history. Example: "navicular disease excluded." The rest of the horse remains covered.

Named Perils Coverage

Policy covering only specifically listed causes of loss. Less comprehensive than all-risk.

Navicular Syndrome Medical

Chronic foot condition affecting the navicular bone and surrounding structures. Common in performance horses. Pre-existing navicular is frequently excluded.

Necropsy (Post-Mortem) Claims

Examination after death to determine cause. Insurers may require a necropsy for mortality claims. Typically paid by the insurer.

Notification Requirement Claims

The timeframe within which the insured must notify the insurer of a loss or incident. Failure to comply can jeopardize claims.

Per Incident Contract

Deductible structure where a separate deductible applies to each new injury or illness.

Per Policy Period Contract

Deductible structure where one deductible applies to all claims during the entire policy year.

Pleuropneumonia (Shipping Fever) Medical

Respiratory infection that can develop during or after transport. Potentially life-threatening. Transit coverage may apply.

Policy Period Contract

The duration of the insurance contract, typically one year from the effective date.

Pre-Existing Condition Underwriting

Any illness, injury, or clinical sign present before the policy effective date. Almost universally excluded from coverage.

Premium Contract

The cost of insurance coverage. For mortality, typically 2.5%–4% of the insured value annually.

Pre-Purchase Examination Underwriting

Veterinary examination before buying a horse. Findings become part of the health record and affect insurability.

Pro-Rated Refund Contract

Return of the unused premium portion upon cancellation, calculated proportionally to the remaining policy term.

Rescission Contract

Insurer's act of voiding a policy from inception due to material misrepresentation on the application. Premiums may be returned but all claims are denied.

Rider Contract

See "Endorsement." An amendment to the policy that modifies, adds, or removes coverage.

Scheduled Property Coverage

Specific items listed individually on a policy with their own values and coverage terms. Used for high-value tack and equipment.

Short-Rate Cancellation Contract

Cancellation method that includes a penalty, resulting in less refund than pro-rated. More common when the insured initiates cancellation.

Subrogation Claims

The insurer's right to pursue a third party responsible for the loss after paying a claim. The insured must cooperate with subrogation efforts.

Surgical-Only Coverage Coverage

Medical coverage limited to expenses directly related to covered surgical procedures. Less comprehensive and less expensive than major medical.

Tack Insurance Coverage

Coverage for saddles, bridles, and other equipment. May be included in farm/ranch policies or purchased separately as inland marine coverage.

Theft Coverage Coverage

Protection against stolen horses. Usually included in all-risk mortality. Requires police report and proof of ownership. May have a waiting period.

Transit Coverage Coverage

Insurance during transport. May be included in mortality, purchased as endorsement, or standalone. Covers loading, transport, and layover.

Underwriter Underwriting

The insurance company or individual who evaluates risk and determines coverage terms. The financial entity backing the policy.

Waiting Period Contract

Time between the policy effective date and when certain coverages become active. Common for medical coverage (15–30 days) and shipping fever.

Waiver Liability

Document signed by participants acknowledging inherent risks and releasing liability. Common at events, boarding facilities, and lesson programs. Does not eliminate all liability.

Actual Cash Value (ACV) Coverage

Market value minus depreciation. Less common in equine mortality than agreed value. Eliminates the need for upfront valuation but creates uncertainty at claim time.

Additional Insured Contract

A person or entity added to a policy who receives liability protection under the policyholder's coverage. Common for facility owners who require boarders or trainers to add them.

Adverse Selection Underwriting

When higher-risk individuals are more likely to purchase insurance, skewing the risk pool. Insurers manage this through underwriting, health requirements, and exclusions.

Aggregate Limit Contract

The maximum total amount an insurer will pay for all claims during a policy period. Different from per-occurrence limits.

AM Best Rating Underwriting

Independent financial strength rating of insurance carriers. "A" or better indicates strong ability to pay claims. Check before purchasing any policy.

Animal Bailee Liability

A person or entity temporarily entrusted with the care of an animal belonging to another. Trainers, boarders, and veterinarians are common animal bailees with specific legal obligations.

Blanket Coverage Coverage

A single coverage limit that applies across multiple items or locations rather than individually scheduled values. Used in some multi-horse or property policies.

Breach of Warranty Contract

Violation of a policy condition or representation. Can void coverage. Common breaches include use misrepresentation and failure to disclose health conditions.

Broad Form Coverage

A policy that covers a wider range of perils than basic or named-perils coverage. Not as comprehensive as all-risk but more protective than limited perils.

Captive Agent Underwriting

An agent who represents a single insurance company exclusively. Contrast with independent agent who can access multiple carriers.

Castration/Elective Procedure Exclusion Coverage

Many policies exclude coverage for elective surgical procedures including castration, cosmetic surgery, and other non-medically-necessary operations.

Catastrophic Loss Claims

A total or near-total loss, such as death of a high-value horse, barn fire destroying multiple horses, or a liability judgment exceeding coverage limits.

Commercial Equine Insurance Liability

Coverage designed for equine businesses — boarding, training, lessons, breeding, events. Covers business-related liability that personal policies exclude.

Congenital Condition Medical

A condition present from birth. May or may not be hereditary. Often excluded as a pre-existing condition if documented, though some may not manifest until later in life.

Contingent Liability Liability

Potential liability that depends on a future event. Example: liability for a horse's actions that may or may not occur.

Declarations Page Contract

The summary page of an insurance policy listing the insured, covered horses, values, coverages, premiums, effective dates, and policy number. Also called the "dec page."

Duty of Care Liability

Legal obligation to provide reasonable care to prevent foreseeable harm. Horse owners, trainers, and facility operators all owe a duty of care.

Earned Premium Contract

The portion of premium corresponding to coverage already provided. If you cancel after 6 months on an annual policy, 50% of the premium has been "earned" by the insurer.

Emergency Euthanasia Claims

Euthanasia performed without prior insurer authorization due to extreme, immediate suffering. Most policies permit this in genuine emergencies but the owner must demonstrate the emergency was real and immediate.

Equine Infectious Anemia (EIA) Medical

A viral disease with no cure. A positive Coggins test result can make a horse uninsurable and require quarantine or euthanasia by state law.

Farm Income Coverage Coverage

Optional coverage under farm/ranch policies that replaces income lost due to a covered property loss — for example, boarding income lost after a barn fire.

First-Party Coverage Coverage

Coverage that pays the policyholder directly for their own loss. Mortality and medical are first-party coverages. Contrast with third-party (liability) coverage.

Fleet/Herd Policy Contract

A policy covering multiple horses under a single contract with potential volume discounts. Common for large operations with 10+ horses.

Force Majeure Contract

Unforeseeable circumstances (acts of God, natural disasters) that prevent fulfillment of a contract. Relevant to both insurance claims and underlying contracts like breeding agreements.

Grace Period Contract

A short period after the premium due date during which coverage remains active even if payment hasn't been received. Typically 10–30 days. Not all policies include one.

Gross Negligence Liability

Extreme carelessness demonstrating reckless disregard for safety. Equine activity liability statutes and waivers typically do NOT protect against gross negligence claims.

Hold Harmless Agreement Liability

A contractual clause where one party agrees not to hold the other liable. Common in boarding, training, and facility use agreements. Enforceability varies by state.

Indemnification Contract

The principle of restoring the insured to the same financial position they were in before the loss. Insurance pays the loss amount, not a windfall.

Independent Agent Underwriting

An agent who represents multiple insurance carriers and can shop among them for the best coverage. Generally preferred for equine insurance due to market variety.

Inland Marine Insurance Coverage

Coverage for movable property including tack, equipment, and horse trailers. Covers items in transit or stored at various locations, not just at home.

Insolvency Underwriting

When an insurance company cannot meet its financial obligations, including paying claims. State guaranty funds may provide limited protection for admitted carriers. Check AM Best ratings.

Material Fact Underwriting

Information that would influence the insurer's decision to accept, decline, or price a risk. Failure to disclose material facts can void coverage entirely.

Moral Hazard Underwriting

The risk that insurance coverage may change behavior — for example, an insured person taking less care because they know losses are covered. Insurers manage moral hazard through deductibles and claims investigation.

Non-Renewal Contract

The insurer's decision not to renew a policy at expiration. May result from claims history, risk changes, or market withdrawal. Different from mid-term cancellation.

Occurrence Claims

A single event or continuous exposure that causes injury or damage. Relevant to both medical (per-incident deductibles) and liability (per-occurrence limits) coverage.

Peril Coverage

A cause of loss. Fire, theft, colic, and injury are all perils. All-risk policies cover all perils not excluded; named-perils policies cover only listed perils.

Personal Property Coverage

Movable property including tack, saddles, equipment, and personal belongings. Covered under homeowner's or farm/ranch policies, often with specific limits.

Pigeon Fever Medical

Bacterial infection (Corynebacterium pseudotuberculosis) common in the southwestern US. Creates abscesses requiring veterinary treatment. Medical coverage typically applies.

Replacement Cost Coverage

The cost to replace a damaged item with a new equivalent. Applies to property (barns, equipment) rather than horses. More favorable than actual cash value for property claims.

Salvage Value Claims

The residual value of property after a loss. In equine insurance, relevant to Loss of Use (the horse has residual value for another purpose) and property claims (damaged equipment still has value).

Schedule Contract

A list of individually identified items on a policy — each horse with its name, value, and specific coverage. Allows customized coverage for each horse on a multi-horse policy.

State Guaranty Fund Contract

A state-run safety net that pays claims if an admitted insurance carrier becomes insolvent. Coverage limits apply. Does NOT cover surplus lines carriers.

Strict Liability Liability

Legal responsibility without proof of negligence. Some states apply strict liability to animal owners — you're liable for your horse's actions regardless of precautions taken.

Third-Party Coverage Liability

Insurance that pays claims made by someone other than the policyholder. Liability coverage is third-party — it pays people your horse injures or whose property it damages.

Umbrella Policy Liability

A policy providing additional liability coverage above the limits of underlying policies. Relatively affordable for the additional protection provided. Recommended for horse property owners.

Unearned Premium Contract

The portion of premium corresponding to coverage not yet provided. The basis for premium refund calculations upon cancellation.

Valued Policy Coverage

A policy where the value is agreed upon at inception and paid in full upon total loss. Equine mortality policies are valued policies — the agreed value is the payout.

Veterinary Release Claims

Authorization from the policyholder allowing the insurer to obtain veterinary records. Typically signed as part of the claims process. Required for claims investigation.

Vicarious Liability Liability

Liability imposed on one person for the actions of another. An employer may be vicariously liable for an employee's negligent horse handling.