A Guide to Horse Insurance

Horse insurance can seem a confusing topic. With so many options, elements, and providers, whether you are taking out your first Horse insurance policy or have one due for renewal, it can seem daunting. The most important thing is that you make sure you take out a level of cover that you understand and are happy with, for both you and your horse.

What is Horse insurance?

The purpose of Horse insurance is to compensate you in the event of loss, by putting you back in the same financial position you would have been in prior to the incident, less the policy excess. Horse insurance is there to protect you against unexpected or unforeseen circumstances. For this reason, Horse insurance policies do not cover any pre-existing conditions as if a horse is known to suffer from a particular issue, there is a higher chance it may reoccur or be a problem again in the future so therefore an exclusion will be placed. If insurers were to cover pre-existing conditions the potential ‘risk’ to Underwriters would be so great that it would make premiums unrealistically high and not a viable option for horse owners.

Typically, you can choose the elements that you include on your Horse insurance policy, depending on your horse’s age, value, and the activities he is used for. These include; mortality cover, vet fees, public liability, personal accident, tack, and trailer. There are some stipulations, but certain Horse insurance cover types are made optional at KBIS, as we understand you may have cover elsewhere and do not need to be paying for the same cover twice. Being able to pick and choose the cover you include means you can fully tailor your Horse insurance policy to the needs of you and your horse.

Why take out Horse insurance?

The reason for taking out Horse insurance varies for most policyholders. Sometimes owners are keen to get back the market value of the horse if the worst happens, whereas others prioritise Vet Fee cover as care and treatment can be costly if required. For horses on loan, it is likely to be a condition of the loan agreement that insurance is taken out for the horse, either by the loanee or by the owner.

Any situation where a Horse insurance policy would need to be called upon is undoubtedly stressful. If you feel the financial stress of such situations would also impact you, it may be worth taking out a policy that covers the elements you are most concerned about. With so many options to choose from, it is important to choose a level of cover that you, as the policyholder, are happy with.

What Horse insurance do I need as an owner?

There is no requirement for horse owners to have any insurance. That said, it is vital that owners, and those with horses in their care, are aware of the risks that come with owning and being in charge of horses, and the sums of money claims can amount to when things go wrong.

As a minimum, it is a good idea to have Public Liability cover for your horse. Under the Animals Act 1971, you have strict liability for the actions of your horse, regardless of factors such as whether you yourself are present at the time of an incident, so it is important to protect yourself by having suitable Public Liability cover in place.

How much is Horse insurance?

How much Horse insurance costs per year varies considerably, depending on many factors such as the value of your horse, the types of cover you include, the level of cover you include for those types, the activities your horse is used for. The age of the horse can also have an impact on the premium, meaning a horse aged 16 or above will typically cost more to insure for the same level of cover as a younger horse if the same cover is available.

It is possible to pay for your Horse insurance each month, rather than needing to pay the whole premium in one go. This can make it more affordable for some, but do bear in mind that interest rates often occur this way, so it does cost more over the course of the 12 months instead of making the payment straight up.

What is Mortality Horse insurance?

Now, this is something that no owner wishes to think about but to ensure you understand the Horse insurance policy you are purchasing, it must be explained. Cover under this section, which is also known as Death, Theft, and Straying cover, is provided if the horse is sadly killed, dies, or has to be put down by a vet on humane grounds as a result of an accident, sickness, or a disease. If a claim is agreed under this section, you will receive a lump sum payment of the horse’s Sum Insured, providing this was still reflective of his market value when that year’s policy was taken out.

When a horse has to be euthanised, in order for a claim to be paid on a Horse insurance policy, the BEVA guidelines must be met. Whilst in some cases, there is a decision to be made by the owner as to whether to treat the horse or make the unfortunate decision to put them to sleep, a claim will only be paid if this was the only option recommended by a veterinary professional for the horse, rather than it being a choice made by the owner.

To insure your horse for a value, you must first decide on how much your horse is worth in the current market. Determining the market value of your horse can be tricky. Check out our ‘how much should I insure my horse for?’ article for advice on how to go about this.

Depending on the value of your horse and the cover you are looking to take out, a vetting may be required in order to insure your horse. Find out if you would need to have a vetting by reading through our ‘Do I need a vetting to insure my horse?’ feature.

Whilst including the Mortality section is optional for some more limited Vet Fee cover options, typically your horse must be insured for a value in order to include more comprehensive Vet Fee insurance that includes cover for accidents, sickness, and disease.

What is Vet Fee insurance?

Veterinary Fee insurance is the most popular type of cover and is usually the reason why people take out Horse insurance. It is also the cover that varies the most between insurers so it is important to check the options available carefully. By including comprehensive Vet Fee insurance, this means you can make a claim for any new accidents, sicknesses, and diseases that occur within the policy period, and be reimbursed for the cost to treat these, less the excess. More limited Vet Fee insurance is available, with cover for accidental external injuries involving an open wound only, or policies such as our unique Catastrophe Cover which provides cover for open wounds and three major surgeries. With KBIS Horse insurance, we have up to ten different Vet Fee options to choose from, so you can be sure to find a Horse insurance policy that suits both your needs and budget.

There are many factors that determine how much Horse insurance costs, the Vet Fee cover you choose is just one. Typically, the Vet Fee section is the bulk of the premium on a Horse insurance policy as it is the most claimed against part, so consider the limit of cover provided and your excess carefully to make sure that you are happy with both the cover chosen and the cost of this.

Factors such as whether the vet fees selected are for full cover or if just for accidental, external injuries only has an impact on the premium, as does whether you choose an annual limit (i.e. a maximum claimable amount within the year) or a limit per incident for each new condition your horse suffers within the 12 month policy period. In addition, consider the excess and whether extras such as complementary treatment and hospitalisation costs are included and required. Have a read of our article on ‘How to save on Horse insurance’ for advice on how to get the most for your money here.

At KBIS, we have options for both Leisure and Competition horses. The full range of Vet Fee insurance available are detailed in the tables below:

KBIS Leisure Horse Vet Fees

Scale Age Range Type Limit Excess Complementary Treatment Hospitalisation Costs Extras
Scale A 90 days – 30 years Accidental External injuries only £3,000 per incident £140 Not Included Not Included N/A
Scale B 90 days – 20 years Accidental External injuries only + 3 major surgeries £7,500 per year £140 Not Included Not Included N/A
Scale C 90 days – 20 years Accident, Sickness and Disease £3,000 per incident £175 + 25% Not Included Not Included N/A
Scale C 21 – 25 years Accident, Sickness and Disease £3,000 per year £175 + 25% Not Included Not Included N/A
Scale D 90 days – 15 years Accident, Sickness and Disease £3,000 per incident £275 Not Included Not Included N/A
Scale E 90 days – 15 years Accident, Sickness and Disease £3,000 per incident £175 Not Included Not Included N/A
Scale F 90 days – 15 years Accident, Sickness and Disease £5,000 per incident £175 £500 during the period of insurance £250 during the period of insurance £7,500 in the event of colic surgery
Scale G 16 – 20 years Accident, Sickness and Disease £3,500 per incident £175 £500 during the period of insurance £250 during the period of insurance N/A

KBIS Competition Horse Vet Fees

Scale Age Range Type Limit Excess* Complementary Treatment Hospitalisation Costs Extras
Bronze 90 days – 15 years Accident, Sickness and Disease £6,000 per incident £500 £500 during the period of insurance £250 during the period of insurance £7,500 in the event of colic surgery
Silver 90 days – 20 years Accident, Sickness and Disease £3,500 per incident £175 £500 during the period of insurance £250 during the period of insurance N/A
Gold 90 days – 15 years Accident, Sickness and Disease £6,000 per incident £175 £500 during the period of insurance £250 during the period of insurance £7,500 in the event of colic surgery
Platinum 90 days – 15 years Accident, Sickness and Disease £6,000 per incident £350 £500 during the period of insurance £250 during the period of insurance £7,500 in the event of colic surgery

* Excess for class of use 1A, 1B, and 2. Excess for class 3 includes an additional 15% co-insurance.

What is Permanent Loss of Use Horse insurance?

Permanent Loss of Use provides cover in the event that the horse is no longer able to perform the activities he was insured for, as a result of an accident, sickness or disease. For example, when you take out a policy, you may have the intention of taking the horse out to event at BE100. If your horse sustains an injury or suffers from an illness that permanently prevents him from being able to do this activity again, this is when a Permanent Loss of Use claim would be considered.

To take out Permanent Loss of Use Horse insurance, a 5 stage vetting is needed to confirm that the horse was fit and well at the point of including this cover. At KBIS, this needs to be no more than 14 days old and X-Rays are also required for horses over a certain value.

When considering a Permanent Loss of Use claim, all treatment options must have been explored to confirm that the horse is permanently incapable of performing the activities he was insured for. There is no cover for temporary loss of use, so ensuring you have adequate vet fee cover in addition to the Permanent Loss of Use section is essential to make a claim against the cost of the treatment also.

As the Permanent Loss of Use section is a higher risk to the underwriters, this means it can increase your premium by a significant amount, depending on the value of your horse and whether you opt for 100% or 75% cover. It’s important to remember that the full amount you select will only be paid if the horse is put down. If the horse is kept in retirement, perhaps at grass or being a happy hacker, they retain a minimum of 10% residual value so you would receive up to 90% or 65% of the Sum Insured depending on the level you opted for.

What is Public Liability Horse insurance?

Public Liability Horse insurance is essential for any owner. It provides cover for claims made by a third party for bodily injury and property damage. For example, if you were out hacking and your horse spooked and kicked a car, it is the Public Liability section of your Horse insurance policy that would respond if you are found to be legally liable for the damages and injury caused to the vehicle/it’s occupants.

It is possible to be found liable for your horse’s actions even if you are not in charge of him at the time of an incident. This means whether your horse is kept on your own land, or at a livery yard, goes out to shows or is retired in the field, protecting yourself with Public Liability Horse insurance is key.

The cost of taking out Public Liability cover is relatively small, however, we have seen claims that exceed £2,000,000 so it’s very sensible to have this cover even if you decide not to insure other aspects of your horse. At KBIS, Public Liability can be added to a Horse insurance policy from as little as £21.83 a year or standalone Public Liability Horse insurance starts from less than £50 for the year.

If you do decide to include Public Liability on your Horse insurance policy, you can choose from £1,000,000, £2,000,000, or £3,000,000. If you opt for standalone cover, £2,000,000 or £5,000,000 are the options available.

When adding the cover to your Horse insurance, it automatically includes anyone else that is handling the horse with your permission (as long as they are not being paid to do so as professionals should have their own cover). If you are looking to take out a standalone policy, you can add authorised users which again includes anyone that has your permission to be in charge of your horse, as long as they’re not being paid.

What is Personal Accident insurance?

Personal Accident insurance comes in many forms. You can include it as an element on your horse insurance policy covering anyone riding or handling your horse with your permission (as long as they are not being paid as, like the Public Liability section, professionals should have their own cover in place to protect themselves). Cover is limited to death and permanent disablement (such as loss of limb and loss of sight) only plus some dental treatment that is not covered on the NHS.

To add Personal Accident cover to your Horse insurance policy, there are two options, £10,000 which includes £1,000 of dental treatment, or £20,000, which includes £2,000 of dental treatment. Cover is available for those aged between 5 and 75 years, although the benefit for those aged under 16 years is reduced by 50%.

If you are looking for more comprehensive insurance of this kind, our standalone Personal Accident policy provides increased levels of protection, including weekly benefits linked to income if you are temporarily unable to work.

What is Legal Expenses cover?

Legal Expenses insurance covers legal costs you might incur while pursuing disputes. A £50,000 per claim limit is now included as standard on all KBIS Leisure and Competition Horse Insurance policies, purchased after 1st September 2022, for the following events:

  • Losses from injury to the horse and property damage whilst you are riding and caring for your horse (which is not otherwise covered by your insurance policy)
  • Contract disputes over agreements entered into by you in relation to your horse (such as during purchase or sale, loan, or the purchase or rent of facilities, land, and stabling)
  • Costs incurred for personal injury which is the fault of another party whilst you are riding and caring for your horse

The cover, provided by ARAG, includes access to a confidential legal advice helpline open 24/7, 365 days a year.

What is Tack insurance?

Tack insurance is cover for damage or loss to bridles, saddles, and accessories. You can add this cover to your horse insurance policy for convenience, so you just have one premium and one renewal date to make things simpler. Keeping your tack safe is important, both at home and whilst you are out and about at shows or schooling. We’ve put together some advice on securing your tack at stay-away shows.

Alternatively, it’s a good idea to check whether your tack is or could be covered under your house insurance under “sporting goods”. If not, and your tack is valued above £10,000 or perhaps is stored somewhere that doesn’t meet the security requirements stipulated by your horse insurance policy, a standalone Tack policy is available through our Property team.

Did you know, you can also include cover for your Horse Trailer under one simple policy with KBIS?

And that’s our guide to Horse insurance. Next, read more of our advice on how to choose which vet fee option is right for you and your horse.