I think the price of a horse though, is relevant to the income of the owner.
The owner and rider of Totilas, are VERY wealthy, a couple of million probably isn't an enormous amount, as it would be to one of us 'normal' income earners.
I paid $10k for my weanling, and my BARGAIN gelding I paid $5k for.
Now, between the two of them, that is a huge chunk of my yearly income. As such, they are both insured. And they both go out into the paddock 24/7. The only time either of them come in, is the night before a show, or if the weather is attrocious.
Their worth to me, would be the equivalent of the chunk of 'income' from the owners of these multi mullion dollar horses.
On the flip side, there's also the talent lost if the horse is injured. Again, all relevent.
If one of my horses is injured beyond 'repair', I'd be stuffed, to be it mildly. My 'bargain' horse is the most talented riding horse that I have owned, and there is no way I'll find another like him for the price I paid, and an even bigger no way for me to be able to afford something like him, for the higher price that he would have otherwise been worth.
That's why you insure horses. Paddock accident, you can claim against. I'm sure Totilas's owners could quite easily afford another very talented horse. As could others in that end of the sport. And the stud fees Toto would make, even if only paddock sound, are huge.
Not saying injury would be ideal, but it's not the end of the world for people with BIG bucks behind them.
Strange, if you read further down my post, you'll see that I was agreeing with you ;)