Fire. Hail. Electric shock. Smothering. It can happen, and if a feedyard or livestock owner is not protected by livestock insurance, losses from any one of these can add up in a hurry.

But what does insurance cover? Is it expensive? What about pasture cattle?

Feedlot cattle insurance covers a variety of perils, including fire and lightening, windstorm, hurricane, tornoado, hail, accidental shooting, drowning, attack by wild dogs, and collision with a vehicle, just to name a few.

Other coverage for contaminated feed, smothering, and theft are also available. There is a measles option for cattle producers that would reimburse the cattle owner if a grower's cattle are condemned at the packer for "cattle measles" infection. Protection for insured if they ever unknowingly buy or sell mortgaged or stolen livestock is also available.

One major cause of death that is not covered is disease.

"Smothering is one of our most common claims," says Dave Berry, Vice President, Livestock Department, The Hartford. "During a blizzard, cattle bunch together and can smother to death. Having livestock insurance protects the feedyard and cattle owner from these types of problems." Carrying livestock insurance also offers the feedyard some protection from its liability to the livestock owner, Berry says.

"We consider catastrophe (livestock) insurance an absolute must," says Bill Roser, manager of Wheeler Brothers Feedyard in Watonga, Oklahoma. "We file very few claims, but you never know what can happen."

"We had a tornado move around some pivots right near the feedyard a few years back. If that tornado had come over the yard and killed a bunch of cattle, the insurance would have covered that loss," says Roser.

Policies can be worded to cover pasture cattle as well. Some insured perils for pasture cattle include a variety of weather-related accidents, collision with a vehicle on the highway, or even drowning. "Occassionally we have a claim where cattle walked out on a frozen tank, fell in and drowned," says Berry.

Livestock insurance from The Hartford pays for losses at current market value at the time of the loss. When a claim is filed, a veterinarian certifies the cause of death. The information is sent to The Hartford's main office in Omaha, Nebraska. In some cases, a representative is sent to the scene, but typically the insurance company relies on the expertise of the local veterinarian.

"The policy has a deductable, so it doesn't cover minor losses. But if you lose more than one or two, it kicks in," says Roser.

The Hartford offers varying rates and deductables to choose from. Most rates depend on the state. Feedyards generally pay on a per head-per month basis, says Berry. The insured report how many cattle they have on the policy each month.

In addition to livestock insurance, The Hartford also can write policies for full mortality on feedlot horses. The full mortality policies include coverage for disease. For more information on livestock insurance, visit The Hartford's livestock division online at http://www.agribizexpress.com/livestock.html. ©