Insuring A $120M Thoroughbred

The Kentucky Derby is upon us and insurers are more than just spectators at this major sporting event. Bloodstock and equestrian insurance is big business with underwriters who specialize in offering tailored protection for high value animals.
Consider the staggering values at stake. A BloombergBusiness article by Mason Levinson tells the tale of American thoroughbred racehorse Tapit. Tapit began his stud career with an initial stallion fee of $15,000. That fee has soared 20-fold in the past decade and in 2015 Tapit will generate over $30 million for his owners. Why? Tapit’s offspring tend to win races.