NU Online News Service, June 23, 2:51 p.m.EST

Churchill Downs Incorporated says it has property and businessinterruption insurance on its racing properties to cover lossesrelated to a tornado that hit the Kentucky Derby horse track June22.

“We are working with adjusters now to determine the extent ofthe damage,” says spokeswoman Julie Koenig Loignon in an email.

She says Churchill Downs cannot speculate about damage costs ordeductibles until the company’s second-quarter results arereleased.

There were no injuries reported to people or horses, though theconfirmed twister in Louisville, Ky. did damage about 10 barnsand a chapel at Churchill Downs. Hundreds of horses and about 100people stay at the track.

Chris Marnitz, owner of Lexington-based equine insuranceprovider Marnitz and Assoc., says insurance for horses depends ontheir value, but equine mortality (basically life insurance for ahorse) and insurance for saddles and other equipment isavailable.

“The high-end horses are normally covered,” he says.

Owners typically chose to self-insure lower-end horses, but thatisn’t always the case, says Shawna Dietrich, founder ofLouisville-based equine insurance provider Dietrich and Co.

“It’s an individual decision by the owner—how much he wants toprotect his initial cash outlay,” she says, adding that whilemortality insurance is the responsibility of the owner, the trainertakes out insurance for equipment.

Coverage for tack, or harnesses and equipment used for riding,is provided with a floater on an inland marine policy, Marnitzsays.

Some health insurance options are available for horse injuries,but not for racehorses due to the risk. Injuries are paidout-of-pocket. Dietrich says there is coverage for thoroughbredsused for breeding and for unborn foals.

However, if workers employed by trainers were injured, theywould be covered by workers’ compensation procured by the trainers,Dietrich points out.

Horse owners cannot turn to Churchill Downs to help with anylosses because damages were caused by a tornado, Marnitz adds.

“If a barn caught on fire, they could turn to the track, butthis isn’t an act of negligence so there is no recourse,” hesays.