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It does not stop after the horse has finished on the track either – the stud fee for famed stallion Frankel soared to £175,000 a time last year. So it is no wonder that owners, trainers and stud farms alike need insurance to protect their assets. Fundamentally, there are two types of insurance: insurance for the horses themselves (bloodstock); and then there is insurance for the horse trainers and studs (liability cover). But it can be broken down still further when looking at the owners, says associate director at bloodstock insurer Lycetts, Anna Goodley. She explains: “There are two types of clients – those who keep a racehorse for fun, including those who may own a tiny share of a horse, up to those who have several horses but maintain ownership as a hobby or interest but not as a business. “Then there are those who have a commercial interest in

owning horses. They see the animal as a commercial asset and are racing the horse to see it gain in value, both on the course and after racing when it might go to stud.” Ms Goodley adds that this second group of owners will have insurance out of necessity to protect their balance sheets. In the UK, horse racing is split between flat and jump racing. While most people would associate the need for insurance with jump racing, where accidents are more likely, in fact the insurance industry reports that most bloodstock insurance relates to flat racing, where the prize money is much higher during the horses’ racing life and where stud fees post-racing can be lucrative. Bloodstock insurance is effectively a mortality cover, only paying out if the horse dies or requires lifesaving vet treatment. A trend that Ms Goodley has noticed is for owners and trainers to spend large sums on MRI scans, CT scans and scopes to identify health problems. Not all of these treatments will be insured under the bloodstock policy. →

45 / The Journal / June - July 2018

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The Journal June - July 2018  

The Journal June - July 2018  

Profile for redactive