Owning and raising livestock can be a fulfilling experience, but it's essential to protect these valuable animals against unforeseen events. Mortality insurance for livestock is a crucial tool for safeguarding your investment, ensuring that if the worst happens, you’re not left with financial losses on top of emotional ones. In this post, we’ll explore what mortality insurance is, how it works, and why it’s especially important for breeders.
What is Mortality Insurance?
Mortality insurance for livestock is akin to life insurance for humans. It provides financial compensation if your animal dies from a covered cause. Full mortality insurance typically covers most risks except those specifically excluded in the policy. Each policy can differ significantly, so it’s crucial to understand what is and isn’t covered. Common exclusions might include diseases specific to the animal, such as Avian Influenza in birds or elective surgeries in sheep.
Added endorsements can provide additional coverage for infertility, sickness, or transit-related risks. If you’re considering insuring your livestock, always review the policy details to ensure it meets your needs.
Adding Animals to a Farmowners Policy: Pros and Cons
A common question among livestock owners is whether they can simply add their animals to an existing farmowners policy. While the short answer is yes, there are two main concerns to consider:
Valuation: Does the policy pay the commercial market value or an agreed amount for your animal? If it's the latter, is there a cap on this agreed value?
Covered Perils: Typically, animals on a farmowners policy are only covered for specific named perils, such as fire, lightning, building collapse, wild animal attacks, or electrocution.
Getting Started with Insurance
Every insurance carrier has its requirements, which can vary based on the animal’s species, value, and age. Generally, the first step is to complete an application with basic underwriting questions, such as:
Any known diseases?
Is the animal on any medication beyond routine vaccinations?
Any previous injuries?
Depending on the valuation and age of the animal, carriers may require additional documentation, like vet certificates, health papers, proof of purchase, or justification of value.
What to Do if Your Animal Dies
In the unfortunate event of an animal’s death, it’s essential to act quickly and follow these steps:
Notify the Insurance Carrier: Contact your agent or the carrier directly to report the loss.
Contact Your Veterinarian: If not already involved, your vet will need to complete a necropsy report (the animal equivalent of an autopsy). This report is crucial for the insurance claim.
Document the Loss: Take pictures of the deceased animal, including a full-body picture and one showing identification (e.g., a tag).
The insurance carrier needs to confirm that the deceased animal is the one insured, that the cause of death isn’t excluded, and that negligence wasn’t involved. If all criteria are met, the claim will be paid.
Insurance Options for Livestock
Mortality insurance is a niche market, and few carriers offer it. There are a couple main players; Rokstone & Axa currently. Reach out to your agent or us to figure out the best option for your specific situation.
We’ve created an insurance program available in all 50 states. This program is tailored specifically for Valais Blacknose and American Australian White sheep.
Key Features of the Sheep Mortality Insurance Program:
Available Breeds: Valais Blacknose and American Australian White
Coverage: Includes death due to Livestock Artificial Insemination (LAI) or Embryo Transfer (ET) procedures, which is typically excluded in other policies.
Rates:
6+ months of age: 14% annually (15% with LAI/ET endorsement)
2-6 months of age: 15% annually (16% with LAI/ET endorsement)
Max Value: $20,000, with exceptions for $25,000 purebreds.
Process:
Complete the application.
Payment in full.
Provide health papers or a vet certificate within five business days.
This program is the first of its kind to cover death resulting from LAI or ET procedures, provided these procedures are carried out by an approved vet (RSG in Lebanon IN is approved).
Conclusion
Insuring your sheep is a critical step in protecting your investment and peace of mind. Understanding the nuances of mortality insurance can help you make informed decisions and ensure your animals are covered adequately. For more information about our Sheep Mortality Insurance Program or to get started, contact us today at tanner@coulterlivestockinsurance.com or (765) 744-0194.
Commentaires