For more on this part of the insurance industry:
1. visit our farm insurance page for a look at all products in this sector
2. or focus in on all of the livestock insurance products available on IB Markets!
Livestock insurance safeguards farmers, ranchers, and producers from financial losses caused by risks affecting their animals. It ensures the sustainability of farming operations. Coverage options include:
Canada’s livestock sector was large in 2024, with millions of beef cows, sows, and gilts. The number of specialty animals like alpacas and bison also grew. This variety makes livestock insurance essential for Canadian farmers.
More insurers are using parametric livestock insurance in Canada, which pays out when weather extremes or disease outbreaks occur. Technology like drones, AI, and wearable sensors is helping insurers track animal health and adjust premiums.
As demand grows for niche coverage on high-value and export livestock, insurers must also manage new threats. These include:
emerging livestock diseases: new strains of avian influenza and bovine respiratory illness may cause widespread losses
parametric insurance payout issues: real-world losses may not match triggers, which may lead to disputed claims
government-backed insurance impact: federal subsidies may reduce demand for private livestock insurance coverage
Brokers should be cautious with income protection policies as market swings can strain insurers. Sustainability-linked policies also need verified data to prevent fraud.
If brokers stay informed on policy risks, it will help them offer better coverage solutions. Insurance professionals can visit the farm insurance page to see more farm-related insurance options and insights.
Livestock price insurance helps cattle and hog producers be secured against market drops. It is available in:
If prices fall below the insured amount, the program pays the difference.
Farmers who raise animals for farming and commercial purposes should consider livestock insurance. Both small family farms and large commercial operations can benefit from this protection.
Some coverage options include:
herd insurance
animal mortality insurance
accident coverage
theft protection
disease coverage
There’s also livestock embryo and semen endorsements for stored reproductive materials.
Clients can choose single animal deductibles for high-value livestock, applying the deceased animal's value toward the deductible.
Basic policies start at around $200 per year, but full coverage costs more. Premiums increase for higher-value bulls or breeding stock.
Keeping a bull costs between $750 to $1,000 per year. The amount covers feed, vet care, and housing.
Bulls are usually replaced every four to six years to keep herd genetics strong. Regular breeding soundness tests help farmers decide when a bull should be replaced.
Yes, bulls are classified as livestock in Canada. Livestock refers to domestic animals like cattle and pigs that are bred or raised for:
Definitions vary by province. Manitoba’s Animal Liability Act defines livestock as animals kept for meat production or breeding, which includes bulls.
Since bulls are uncastrated male cattle used for breeding, they meet this definition. Getting livestock insurance allows farmers to handle financial risks.
Yes, horses are classified as livestock in Canada. The Canada Revenue Agency includes them in its definition of farm animals raised for work, sport, or breeding.
Horses can be covered under livestock insurance, but classification may vary by province depending on their use and purpose.
Horse insurance, or equine insurance, can help cover:
Owners should consider their horse’s value, purpose, and risks before deciding on coverage.
Equine insurance policies often exclude:
Owners should check policy details to understand what is and is not covered.
What is the maritime livestock price insurance pilot program?
This two-year program started in 2024 for beef producers in Prince Edward Island and New Brunswick.
It helps safeguard cattle prices from sudden drops. Farmers pay the full premium, while federal and provincial governments cover program costs.
Insurance firms set livestock insurance costs based on the animal’s value, age, health, and coverage type. For example, a breeding bull costs more to insure than a standard farm cow.
Market changes and regional risks can also affect pricing. Insurers consider these factors to offer fair premiums that match the threats of each policy.
