The work of Grannis, Green and Bruch (2004) entitled: Animal Health: The Potential Role for Livestock Disease Insurance state that animal disease can cause significant production losses and a reduction in livestock receipts. Grannis, Green and Bruch state that an opportunity development exists in assisting the management of livestock disease risks and one example is Germany. Evidence from Germany demonstrates that both alternative value and consequential loss policies for livestock producers can be developed and can work in parallel with government indemnity programs. In Germany, indemnity payments are made based on predetermined and published payment schedules. These schedules are capped by maximum values that do not represent the value of superior commercial animals. Policies are available to insure the difference between the value indemnified according to the published government schedule and the value of the animal under regular, nondisease market conditions.