So much of how it works varies by the company.
With my horses, I bought coverage from a company that only dealt with horses on the competition scene. Never used it but, I liked knowing that if someone was dumb and walked behind my trailer while I was unloading or didnt stay behind the tape at a parade, I had the liability coverage or if we were in an accident and I lost one of my horses (even though “they” cant be replaced) I would have coverage to get another horse of similar breeding and training. My husband and I are looking at buying “real” bikes this weekend and I will be looking into something similar.