Some of our clients’ most commonly asked questions
If you have another question, then don’t hesitate to call our office +612 9909 1499 and talk to one of our friendly team.
Do many people insure horses?
The answer is ‘yes’, most people insure at least for the first 12 months. Insurance policies are written on an annual basis so that the need to insure can be assessed at each policy expiry.
Are horses at high risk?
Actuarial studies indicate that you have a 28% or more chance of claiming on your horse than you do on your car. Most cars of course are insured before they leave the show room and come with guarantees – horses have no guarantee. Investing in a suitable policy is obviously the way to protect your investment and ensure that funds are available to replace the horse if the worst happens.
What type of horses can be insured?
All types of horses can be insured including: Foals, Yearlings, Racehorses, Mares, Stallions, Syndicated Horses, Equestrian, Hacks, Camp drafters, Cutting Horses etc.
Part Ownership – Can I insure my share?
Yes. Syndication is now a very regular form of ownership and each individual shareholder can insure each share separately.
At what age can my horse be insured?
A foal can be insured at 24 hours after birth with a satisfactory report confirming it is in good health completed by a licensed veterinarian. Bloodwork including IgG test results are required on newborn foals.
Is it more costly to insure a young foal?
Yes, the rates required for foals from 24 hours after birth to 90 days of age are generally higher than the normal rates. However, these usually reduce at 8 days of age and again at 30 days of age, if you are willing to wait until your foal is that bit older to insure it. The reason is simple; the risk is greater for these young horses in this early developmental period. The higher rate on foals allows the insurance company to offer a lower rate during most of your horse’s life. If you insure your young foal for the cost of the breeding (usually up to 2 times the stud fee paid to produce the foal is acceptable by the insurance company), then your insurance cost during the first year will not be that great and you will be covered for the expenses you incurred to produce the foal.
What do I need to do to begin insurance
coverage on my horse?
It’s simple! Phone or email our office, or follow the ‘Contact Us’ link on our website to complete and submit a contact form. An application is required on each horse to be insured. A satisfactory report completed by your veterinarian is required for horses valued at greater than $20,000 and less than 45 days of age or over 12 years old and any stallion requiring infertility coverage. A health statement completed and signed by you confirming the good health and health history of your horses is all that is required for other horses. If your horse has had prior health abnormalities, a vet exam may be required to provide full details of the prior incidents and confirmation of full recovery. If all information is order, interim coverage can usually be bound immediately.
How can I justify the value for insurance on my horse?
If this is a recent purchase, the purchase price will be the amount of coverage accepted by the insurance company for your insurance policy. If your purchase occurred in the past, we will need to know if your horse has been in training, shown or raced or if a stallion or mare, if it has been breeding and producing foals. It is necessary to justify the value of your horse for the insurance policy. If the amount of insurance requested is more than your purchase price, we will require justification for this increase by way of show or race record, produce record (average sale price of foals sold) or an appraisal by a certified equine valuer or trainer familiar with your horse. We have forms available on our website to assist you in providing us with the information.
How do I make a claim?
Notifying any injury or illness promptly is the owner’s responsibility. Failure to quickly notify Logans may jeopardise any future claim on your policy. The procedure is to notify Logans of any injury or illness and obtain veterinary attention. If the horse dies you should also notify Logans immediately and you will need a post mortem with identification recorded by an independent veterinarian. As the owner you are required to complete a claim form. Your vet also is required to do the same.
I plan to geld my young colt. This is elective surgery.
Am I required to notify the insurance company?
Yes, the insurance policy specifically requires notification of any surgery whether elective or not. Except in the case of emergency life-saving surgery, prior notification needs to be given to Logans. If you do not make us aware of the planned procedure, you may jeopardise any future claim on your policy.
Do I need to include the GST component in my
In 95% of cases the answer is NO.
The Australian Tax Office (ATO) has made provision for the GST component of claims on the basis that the purpose of insurance is to put you in the same position after the claim as before. In this regard, if you are registered for GST you can claim back the GST component when you purchase the horse and insurance on the animal. GST therefore has negligible effect and in the event of a claim you receive the limit of liability without any GST. In your BAS you put down the claim proceeds as a GST Free receipt. If you are not registered for GST and paid GST on the premium you receive the limit of liability from the insurer and an additional 10% which Logans pay out on behalf of the ATO. Therefore, if your limit of liability is $10,000 then you would receive a cheque from Logans for $11,000 ($10,000 from the insurer and $1,000 from the ATO). On the odd occasion where GST is not paid on the premium, such as a high valued animal and the Underwriting service is physically done overseas, then no GST applies. If you are not registered for GST then the limit of liability could include the GST component if you wish.