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Rest Insured

Friday, June 23, 2017

Industry News Management Practices Showpig News

As the saying goes, “If you have livestock, you will have dead stock.” That’s why protecting your four-legged investments is a wise thing to do. The Showpig.com team caught up with Mart Smith, the president of The Smith Sawyer Smith Agency, located in Rochester, Indiana. Mart has a long history of insuring livestock, and he helped us answer some of the questions we had about the process.

While these FAQs are a great space to start, when thinking about insuring your livestock, it is important to point out that some of these answers will be dependent on the company you chose to insure with. Always check with your chosen agent to make sure you understand the ins and outs of your policy and its coverage.

What paper work will I need to insure my animal?

If you are purchasing an animal at an event sponsored by any or all the breed associations, then all you need to insure an animal is a copy of the paid receipt. If you are purchasing an animal in a private treaty (one owner to another owner), then the requirements change. In this case, you would need to provide proof of payment (a cancelled check or a paid receipt) and a current health paper provided and signed by a licensed vet.

How is the amount I insure this animal for decided?

The amount is determined by the sale price, in most cases. In some situations, a purchaser may decide to insure only a portion of an animal. This happens when there are multiple owners and not all wish to insure, or if somebody would decide to self-insure part of the purchase. If a breeder buys an animal online they can include the buyer surcharge they pay to the value of the animal and insure that total. This is the only situation where a breeder can insure an animal for more than they paid. There is also one other scenario where a breeder wants to insure an animal that has not gone through any sale, such as one they have raised themselves. These animals are insurable as well, but it is more difficult to establish a value because there is not a sale price. In this case, we would use breed officials and other breeders to evaluate and establish a value.

Is there a certain age of pigs that can or can’t be insured?

Animals are insurable between the ages of 90 days and 2 years. This is currently under consideration and the age could change-especially on the younger side, but those are the current ages.

How do I know what types of losses are covered?

There are very few exclusions on the full mortality policy. War is an exclusion on most any insurance policy, a breeder can’t intentionally kill or cause an animal to die for any reason and if an animal is going to undergo any surgery it needs to first be okayed by the company.

What do I do if I lose an insured animal?

The proper procedure is to call XLCatlin directly. They have two dedicated lines set to receive claim calls 24/7 (866-923-2820 or 859-260-2820). More generally a breeder calls us, and we direct them to the toll-free numbers. XLCatlin requires direct contact with the breeder in the event of a loss.

Do I need to get a different type of policy for a bred gilt versus a boar?

There is only one policy needed to cover boars, gilts or bred gilts, and the rates are the same for all animals. The only thing to remember, and this is critical, to have farrowing covered as an insured peril a bred gilt must be insured at least 4 weeks prior to farrowing. This causes a lot of confusion for breeders because many bred gilts are sold online, and oftentimes, purchased with less than four weeks until farrowing. They are usually disappointed to learn we can insure for all the other perils, but not for farrowing in that situation.

Is it possible to insure a very expensive show barrow?

Although our program is designed for the livestock breeders it is, at this time, possible to insure expensive show animals.