In some industries, the risks are so great that it’s almost impossible for business owners to deal with them. While all business ventures have some risk, when the risk gets too high, it’s time for investors and owners to bail. The equine industry is one of those industries where the risk levels oscillate between too much and just enough. After all, animals are finicky by nature. It is hard to know what they are going to do at any time. Whether they are racing horses or show horses, they are prone to getting diseases and other conditions that can make them worthless in an instant. So what do owners and investors do to make this industry palatable? The answer lies in insurance.
The original insurance companies insured ships making voyages around the world. The idea behind insurance at the time was that it could be the sort of force needed to allow these risky ventures to prosper. Without insurance, no one would have been willing to invest in shipping things across the ocean. The risk of ruin was just too high. The horse industry has a similar risk of ruin. Many professional breeders and horse racing operations are lucky if they can develop a single champion. That horse can then provide them with a stream of income for years to come. With an asset like that in tow, it makes sense to seek insurance.
The horse insurance cost is well worth it when one considers what this coverage entails. Horse insurance provides protection against all sorts of different things that can befall horses. Among those issues is sickness, which can come because of poor conditions or simply bad luck. Horse companies can also insure their horses against the injuries that come with racing. If a horse happens to fall and break a leg, it is very difficult to get that horse back on the track again. Having insurance provides the owners with the ability to run and work the horse without worry. After all, if something bad happens, they will be covered on the back end.
Horse insurance is truly the thing that allows the horse industry to grow and prosper. With it, many people would never consider getting involved in an industry where they could lose everything they have worked for with a single stroke of bad luck. It’s insurance that strikes at the heart of what insurance is all about.