Champion Dogs Often Go Bare On Insurance
Bloodstock insurance market is much larger by comparison, experts say
Although the popularity of purebred dogs and breed competitions in the United States has soared, insurance coverage being purchased is nowhere near that of thoroughbred horses, according to industry experts.
In fact, even though a champion dog may be worth thousands of dollars, many breeders opt not to insure them against mortality or theft, said Margaret Kramer, senior vice president, Bollinger Insurance, an agency in Short Hills, N.J.
"I would think at some point a championship dog might be insured, but I've never heard of it," she said. "I know in horse racing, absolutely a stud or valuable racehorse is typically syndicated and insured."
Ms. Kramer said the main reason is that their value isn't as great, even though a good quality show dog might be valued at as much as $10,000.
The money involved, she said, is in breeding, handling, training and grooming of the dog. But these expenses are generally much less than those associated with owning, training, showing and racing a thoroughbred. Horses are usually boarded, they must be transported by trailer, they sometimes need expensive medical treatment, and they have to be shoed every six weeks, she pointed out.
Most importantly, "If you're racing that horse, people are putting money down and betting on that horse. There is a purse involved," she added. "That increases the value."
Typically, champion dog owners might purchase pet health insurance.
Bollinger was formerly provider of pet health care coverage for American Kennel Club members.
Jeff Latke, senior underwriter and assistant vice president at Russell Bond and Co. Inc. in Buffalo, N.Y., a managing general agent and wholesale broker, said they provide coverage for large events on the scale of the Westminster Dog Show.
"That would be considered a special event," he said. A show like the Westminster would be written as general liability that would cover spectators but not participants.
"Dog owners would have their own liability coverage in case the dog bit someone, for example, or did some type of property damage," Mr. Latke said.
The amount of coverage would depend on the number of people attending and the length of the event. A large event might last several days. Cost of coverage would vary, although he speculated a large event would require limits of at least $1 million. "At Madison Square Garden, they may need $5 million," he said. Event cancellation is a separate coverage that could be added.
He added that there would be no property insurance because the location would be rented.
Diane Lawrence, assistant vice president of operations with the Continental Agency of Florida in Boca Raton, Fla., agreed that coverage for a large show such as the Westminster would be a special event.
"Normal attendance per day could not fall over the 10,000 limit," she said. Coverage limits vary from $300,000 to $1 million, she said, which would cover the event but would also exclude participants.
Ms. Lawrence said that in Florida incidents of targeted theft of valuable dogs and other animals such as parrots have been reported. In one instance, she noted, a show dog was stolen from its owner's home. The owner "was frantic, and I'm sure she didn't have any coverage on the dog," she said. "And I don't believe she ever got the dog back."
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Champion dog coverage is a far howl from the bloodstock market for thoroughbred horses, with many breeders opting not to insure the dogs, experts say.
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