Alpaca Insurance

Unfortunately, we will all experience the death of a beloved alpaca at some point. We like to only think about the blessings that alpacas add to our lives. However, their death is an inevitable fact of life in the livestock industry. I know that we will be devastated when our first loss occurs.

In the meanwhile, we can at least protect our financial investment with livestock mortality insurance. This type of insurance is rather similar to life insurance for people. If the alpaca dies, you are paid for your loss.

You must state that your alpaca is healthy at the start of the policy. If the value is above $30,000, the insurance company usually requests a Certificate of Veterinarian Inspection.

Alpacas younger than 3 months and older than about 13 years will cost more to insure. It may also cost more if the alpaca has been sick or has been treated by a veterinarian during the last year.

Whenever it comes to the insurance industry, it is vital that you read the fine print with the policy so that you understand the terms exceedingly well.

For example, some policies will pay out the insured amount. However, other policies will only pay out the market value of the alpaca which they determine and which is not favorable if prices drop.

Here are a few other points to check out.

• Is the policy a Full Mortality Policy which covers death as a result of an accident, illness, injury or humane destruction?
• Does the policy cover transportation accidents?
• What about loss or death as a result of theft?
• Does the policy cover dog attacks?

You have the option of insuring each alpaca individually, or insuring the herd as a whole. Discuss various options with the insurance company so that your needs are met.

You may be required to obtain insurance on your alpacas if you have a farm loan or small business loan, or if you are financing the purchase of your alpacas. Otherwise the choice whether to insure your alpacas is up to you. It all depends on whether you can afford the potential loss.

For example, you will probably want to insure your prized herdsire or your ultra reliable foundation dams. However, once your dams have replaced themselves with a female cria, you may want to transfer the insurance to the offspring instead. Another idea is to insure your alpacas until you have recovered your initial investment, or until you have a steady stream of alpaca revenue.

The insurance company requires you to contact them as soon as possible if the alpaca becomes sick, injured, or dies. Most likely they will also want a necropsy to ascertain cause of death.

Personally, we use Prairie States Insurance Agency for our alpaca insurance needs. The premium is 3.3% of the insured value. We appreciate that they bill several times per year with no extra fees so that our payments are spread out. And they are always so friendly and helpful on the phone.

There are other insurance companies out there. I suggest that you find one that really understands the alpaca industry.

I hope that your alpacas stay healthy and accident-free so you do not need your alpaca insurance any time soon!

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