Animal Mortality Insurance

What is 'Animal Mortality Insurance'

Financial protection for businesses in which animals play a valuable part. Animal mortality insurance can cover both natural and accidental death as well as injury, sickness, disease and theft. Many different types of businesses rely on animals for income and experience significant losses when one or more of their animals dies. Examples of such businesses include farms, ranches, zoos and aquariums. Animals may be particularly valuable because of their training (e.g., police dogs), breeding (e.g., show horses), rarity (e.g., a zoo’s panda bears) or fundamental importance to the business (e.g., the chickens on a poultry farm).

BREAKING DOWN 'Animal Mortality Insurance'

Like other types of insurance, an animal mortality insurance policyholder will only be reimbursed for claims based on specified events. These might include storms, hypothermia, traffic accidents, contaminated food or water, or accidental shootings. Animal mortality insurance can protect the policyholder against monetary losses from having to replace an animal that dies and from the future anticipated profits the deceased animal can no longer generate. Animals may not be eligible for mortality insurance if they have a pre-existing condition or are too old, and insurance premiums depend on the animal’s age, sex and value as determined by an appraisal. An optional policy feature may provide for animal carcass removal after a covered loss.

Without animal mortality insurance, a livestock breeder could be ruined if several animals intended for sale or used for breeding suddenly died. General farm policies may provide some broad coverage for animal loss from certain causes, but animal mortality insurance can provide more specialized or broader coverage. Blanket coverage can be purchased to cover large groups of animals, such as all the animals on a farm up to a certain number, or more narrowly defined coverage can be purchased for a specific type of animal, such as a herd of 200 cows, or even for individual animals, such as a prize-winning horse.