Bloodstock Insurance: Essential Protection for Breeding Operations and Thoroughbred Investments

TL;DR: Bloodstock insurance is the specialised branch of equine cover for Thoroughbred and Standardbred horses used for racing and breeding, where values can be high and the risks, such as mortality, stallion infertility, mare barrenness and foaling complications, can carry large financial consequences. It centres on mortality and can extend to the risks specific to breeding, with cover built around the individual horse, its value and its role. What any policy responds to depends on the wording, the sum insured and the options selected. Gow-Gates arranges bloodstock cover within its equine and bloodstock practice and is not the insurer.

This article is part of our Equine Insurance 101 guide, within equine and bloodstock cover.

What is bloodstock insurance?

Bloodstock insurance is cover designed for Thoroughbred and Standardbred horses used for racing and breeding, the two breeds that race in Australia. Thoroughbreds race under saddle on the flat or over jumps, while Standardbreds race in harness as pacers or trotters. The financial stakes for these horses can be far higher than for a typical pleasure or competition horse. Cover centres on mortality (the death of the horse) but extends to the risks unique to breeding, such as stallion infertility, mare barrenness and prospective foal cover.

The reason it is treated as its own class of cover is the combination of high values and specialised risk. A single stallion or broodmare can represent a very large investment, and the events that threaten that investment, such as a difficult foaling, a fertility problem or an injury that ends a breeding career, are specific to breeding and are not contemplated by an ordinary mortality policy.

Australia's bloodstock breeding sector is significant in scale. According to AgriFutures Australia's most recent Size and Scope study (2022–23), the thoroughbred breeding industry contributed an estimated $1.68 billion to the economy and is among the largest in the world, concentrated in regions such as the Hunter Valley in New South Wales. For large or small-scale bloodstock breeding operations alike, cover tailored to their bloodstock risk is a core part of managing the business.

What does bloodstock mortality cover?

Bloodstock mortality cover responds to the death of an insured horse from an accident, illness or disease, and typically to humane destruction carried out on veterinary advice. It is the foundation of most bloodstock programs, protecting the capital value of the horse against the most serious loss.

Mortality cover is usually written for the current or fair market value of the horse, the price at which ownership would change hands between a willing buyer and a willing seller, such as the fall-of-hammer sale price. Cover can also be written on an agreed or assessed value basis in certain circumstances. Because a horse's value can move materially over time, the sum insured should be reviewed regularly rather than simply carried over at the original purchase price at renewal, so cover continues to reflect the horse's fair market value. For example, a colt bought as a yearling may later be gelded and lose its breeding value, while a horse that performs well can become worth more. Theft or straying is a standard inclusion on most mortality policies.

As with all insurance, the response to any claim depends on the terms, conditions and exclusions specifically listed on that policy. For example, a pre-existing condition may have been declared when the policy started, and the underwriter may have placed an exclusion against it.

What breeding risks can be insured?

Beyond mortality, bloodstock cover can address the specific risks of breeding: infertility, barrenness and the loss of foals. These are separate exposures that can be insured through options added to a bloodstock program, which protects the income-generating role of the animal, not just its life. Fertility and foaling covers respond to the reproductive risks that sit at the heart of a breeding enterprise, where a single unsuccessful season carries real cost.

Whether a particular risk can be insured depends on both the operation's circumstances and the individual horse's suitability for that type of cover. For example, a mare that has lost her foal, either stillborn or before her due date, across several consecutive seasons may not be a candidate for prospective foal cover, because the risk is too high for underwriters to take on.

How is bloodstock valued for insurance?

Bloodstock is generally insured for its current or fair market value, and clients are responsible for sourcing a formal insurance appraisal to support that value. Gow-Gates works with clients to guide them on the documentation insurers generally require to support the declared value of a horse.

That documentation may include:

• Purchase receipts or auction results
• Pedigree and breeding records
• Veterinary reports
• Performance or racing history
• Comparable market sales

Getting the value right matters, because it determines both the premium and what is paid if a claim is met. Reviewing it regularly, and documenting it properly, reduces the risk of dispute and helps ensure cover reflects the horse's true insurable value.

How does the bloodstock claims process work?

A bloodstock claim generally starts with prompt notification and thorough documentation, such as veterinary reports, proof of ownership and value, and any evidence relevant to the loss. As with any claim, good records and early notice support the process.

Time-critical steps often apply. Many policies require immediate veterinary attention and notification when a horse is seriously ill or injured, and humane destruction usually needs to be certified as justified on veterinary grounds for a mortality claim to respond. Whether a claim is ultimately met is determined by the insurer against the policy wording; a broker's role is to advocate for the client, not to decide the claim.

This is where a specialist broker adds value. Gow-Gates manages the claims process on the client's behalf and advocates for a fair and timely outcome, working with the insurer and drawing on equine-specific knowledge. Gow-Gates provides claims advocacy from notification to resolution; the outcome of any claim is determined by the insurer, not by Gow-Gates.

How to arrange bloodstock cover

Arranging bloodstock cover starts with the horses and how they are used: the animals to be insured and their values, and their roles (racing, stallion, broodmare or foal). Disclosing these accurately is what makes the program respond.

A structured review suits breeding operations because the combination of high values and breeding-specific risks rarely fits a generic template. Mortality is the foundation, with fertility, foaling and other breeding covers considered alongside it. Binding terms should be confirmed against the actual policy wording, and values kept current.

A specialist broker such as Gow-Gates Insurance Brokers, whose equine and bloodstock practice has advised racing and breeding operations for many years, can help structure bloodstock cover, place complex risks, and advocate at claim time. Gow-Gates can also arrange the property, liability and workers compensation cover a breeding operation may need alongside its bloodstock. Gow-Gates arranges insurance and is not the insurer, and the suitability of any product depends on each operation's circumstances and the relevant Target Market Determination.

Key takeaways

• Bloodstock insurance is the specialised branch of equine cover for Thoroughbred and Standardbred racing and breeding horses, built around high values and breeding-specific risks rather than a standard mortality policy.
• Mortality cover is the foundation and is usually written for the horse's current or fair market value (or, in certain circumstances, an agreed value); reviewing the sum insured regularly, not just carrying over the purchase price, keeps it accurate.
• Breeding-specific risks, such as stallion infertility, mare barrenness and the loss of foals, can be insured through options; whether a risk can be covered depends on the operation's circumstances and the individual horse's suitability.
• Bloodstock is insured at fair market value; clients source a formal appraisal, and documentation (purchase or auction results, pedigree, veterinary reports, racing history and comparable sales) supports the declared value.
• A specialist broker advocates at claim time and can also arrange the property, liability and workers compensation cover a breeding operation needs; the insurer ultimately determines any claim outcome.

Frequently asked questions

What is bloodstock insurance?

Bloodstock insurance is specialised cover for Thoroughbred and Standardbred horses used for racing and breeding. It centres on mortality (the death of the horse) and can extend to breeding-specific risks such as stallion infertility, mare barrenness and prospective foal cover. It is designed for the high values and specific exposures of racing and breeding, which an ordinary mortality policy does not address.

What does bloodstock mortality cover?

Bloodstock mortality cover responds to the death of an insured horse from an accident, illness or disease, and typically to humane destruction on veterinary advice. It is usually written for the horse's current or fair market value, or, in certain circumstances, an agreed or assessed value, and theft or straying is a standard inclusion on most mortality policies. What is and is not covered, including how any pre-existing condition is treated, depends on the terms, conditions and exclusions specifically listed on that policy.

Can you insure a stallion or broodmare for infertility?

Fertility and breeding risks can often be insured through options added to a bloodstock program, for example cover for stallion infertility or mare barrenness. Whether a particular risk can be insured depends on both the operation's circumstances and the individual horse's suitability; a horse with a poor breeding history may not be a candidate for some covers because the risk is too high for underwriters.

How is a bloodstock horse valued for insurance?

Bloodstock is generally insured for its current or fair market value. Clients are responsible for sourcing a formal appraisal, and Gow-Gates guides them on the documentation insurers usually require, such as purchase or auction results, pedigree and breeding records, veterinary reports, performance or racing history, and comparable market sales. Reviewing the value regularly keeps cover aligned with the horse's worth.

Does Gow-Gates handle bloodstock claims?

Gow-Gates provides claims advocacy for bloodstock clients, managing the process from notification to resolution and advocating for a fair and timely outcome with the insurer. Prompt notification, veterinary certification and good documentation support a claim. The outcome of any claim is ultimately determined by the insurer, not by Gow-Gates, which acts as the client's advocate.

About the author

This article was prepared by the Sport & Equine practice at Gow-Gates Insurance Brokers Pty Ltd (ABN 12 000 837 785, AFSL 245432), an independently owned Australian insurance broking and risk advisory firm operating for more than 60 years. Gow-Gates advises racing, breeding and equestrian operations on structuring insurance programs and advocating at claim time, and is a member of Steadfast, NIBA and AFCA.

Sources

1. AgriFutures Australia. "Australia's thoroughbred breeding industry valued at $1.68 billion." agrifutures.com.au
2. Racing Australia. "Racing Australia Fact Book 2025." racingaustralia.horse
3. AgriFutures Australia. "Thoroughbred Horses." agrifutures.com.au
4. Gow-Gates Insurance Brokers. "Equine and Bloodstock." gowgates.com.au

Disclaimer: This content contains general information only and does not take into account your personal objectives, financial situation or needs. You should consider how appropriate any information is to your own objectives, financial situation and needs before acting on it. Gow-Gates makes no representation or warranty concerning the application of policy wordings. For full details of the terms, conditions and limitations of cover, refer to the specific policy wordings and/or Product Disclosure Statements, the relevant Target Market Determination, and the Gow-Gates Financial Services Guide. Gow-Gates Insurance Brokers Pty Ltd arranges insurance and is not the insurer. © Gow

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