Horse owners and breeders should be aware of the possible limitations in their racehorse insurance coverage policy. Two recent coverage disputes decided in favor of the insurance company illustrate how policy exclusions and limitations can undercut coverage. These cases highlight the need to carefully consider policy language in light of one’s own practices and possessions.

In a recent case in Kentucky, a horse owner and breeder found out it was not covered after its prized sire died. In Creek Equine, LLC v. North American Specialty Insurance Company, No. 5:2022-cv-00095 (E.D. Ky. Sept 16, 2024), Cypress Creek Equine (Cypress) paid for a mortality insurance policy for stallion Laoban but ultimately received no insurance coverage for the stallion’s death – even though Laoban was insured for over $2 million. Cypress also insured Laoban for infertility caused by accident, sickness and disease. Cypress Creek is instructive because it provides guidelines for owners and breeders on how a mortality insurance policy may be construed.

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Steven J. Pudell is the managing shareholder of Anderson Kill P.C.’s Newark, NJ office, and Abigail Damsky is an associate pending admission in Anderson Kill’s New York office. Steven and Abigail represent insurance policyholders in coverage disputes.