Photo by callipso88/Adobe Stock

In this practical guide for horse owners, Laura Connaway of Connaway & Associates Equine Insurance Services, Inc. outlines the critical importance of a full and transparent exchange of information before entering into an insurance policy agreement to avoid unwelcome surprises in the event of a claim. She also outlines the one valuable step that some owners miss during the horse purchase process.  

Full Disclosure and Proactive Communication

Insurance is a shared risk in which the insurer and the insured share the financial risk of ownership in exchange for payment of premium.  

Omitting or withholding information can result in denied claims or policy cancellation, and deliberate concealment may constitute insurance fraud. Clients must be diligent in gathering and sharing all relevant data to ensure proper coverage and avoid complications during the claims process.  

Client Responsibilities:

◆ Provide complete and accurate information about your horse’s health, medical history, and intended use. 

◆ Complete the insurance application thoroughly, including details obtained during any pre-purchase exams (PPE) and from the seller. 

◆ Proactively seek clarification and understanding of the policy, and promptly disclose any changes in the condition of the horse, use, or concerns. 

Agents strive to make sure clients understand what their insurance covers, what it excludes, and how to best prepare for a successful claim. Transparent communication lays the foundation for trust and confidence in the coverage. 

Agent Responsibilities:

◆ Clearly explain the terms, benefits, and limitations of each policy. 

◆ Provide detailed answers to questions and ensure clients are fully informed. 

◆ Educate clients about the procedures, potential exclusions, and how underwriting decisions are made. 

Practical Examples and Consequences

Full disclosure is essential at every stage of the insurance process. Providing all available health information — including veterinary reports, PPE findings, and past injuries — enables the insurance underwriter to accurately assess risk and offer appropriate coverage. For example, if a horse had a suspensory injury more than a year ago but has since returned to showing, the underwriter may still approve coverage without an exclusion. Conversely, failure to disclose past health issues can lead to claims being denied or policies being voided. 

Before purchasing or leasing a horse, submitting a comprehensive application for underwriter review helps identify any exceptions or exclusions. This transparency informs buyers of the risks and ensures that any pre-existing conditions are properly evaluated. Not all findings result in exclusions; insurers assess each situation individually and may revisit certain exclusions over time. 

Insurance Company Guidelines and Application Review

Underwriting guidelines differ among insurers, especially regarding past injuries or illnesses. Presenting insurance paperwork to multiple companies allows clients to compare underwriter reviews and select the best coverage. The application process typically involves a detailed health history, gathered during PPE and through communication with sellers, and helps document all potential concerns before coverage begins. 

The Application Process: Insurable Interest and Health Information

Applicants must have an insurable interest in the horse — such as being an owner, co-owner, lessor, or lessee — and are responsible for completing the application accurately. Comprehensive health information is required, and any omission or misrepresentation may result in claim denial. This process is an opportunity to collect historical health details, ensuring that all relevant data is included and evaluated by the underwriter before finalizing the purchase or lease. 

The Claims Process: Documentation, Exclusions, and Transparency

In the event of a claim, the insurance company reviews the health care information submitted at the time of application and policy inception. The claims adjuster will: 

◆ Establish the onset date of the incident. 

◆ Collect information from all treating veterinarians. 

◆ Assemble a timeline to determine when the medical issue began. 

◆ Request medical records and PPE reports to confirm the issue occurred during the policy period. 

Horse insurance policies exclude pre-existing conditions unless they have been fully disclosed and explicitly accepted by the underwriter. Exclusions may apply to the entire policy or to specific components, such as medical reimbursement. Transparency from the outset ensures that claims are processed fairly and reduces the risk of denial. 

Empowering Clients Through Transparency and Education 

Horse insurance is a partnership that shares the financial risk of horse ownership. By emphasizing transparency, full disclosure, and proactive education, agents and clients can work together to secure the best coverage and ensure claims are honored when needed most. Understanding your responsibilities and maintaining open communication will empower you to make informed decisions and protect your investment.
 

This article about full disclosure in horse insurance is a web exclusive for Horse Illustrated magazine. Click here to subscribe!

The post Horse Insurance: The Critical Importance of Full Disclosure  appeared first on Horse Illustrated Magazine.

Photo by stokkete/Adobe Stock

Since 1992, Laura Connaway of Connaway and Associates Equine Insurance Services, Inc. has been working with her team to bring a personalized touch to the horse insurance market, offering competitive coverage for horses, horse farms, and equine liability. As an insurance agent, the most important part of the role is to inform and educate clients so they understand the coverages that are available to suit their individual needs. Laura addresses several of the most commonly asked questions below.

When do I need to notify my insurance company of changes in my horse’s condition?

Your insurance carrier requires notification of any changes in the condition of your horse. It is a part of your insurance contract to notify the insurance carrier of any accidents, illnesses, injuries, diseases, lameness, or any time your horse receives non-routine care. Late reporting may impact your coverage under the policy and may affect your ability to make a successful claim. If you do not plan to file a claim, an incident-only report can be provided to fulfill your requirement to notify the insurance company of the change in condition.

Should I call my vet or my insurer first in case of a medical emergency?

In the event of a medical emergency, contact your veterinarian immediately and proceed with life-saving care. Next, contact your insurance carrier using the emergency phone number in your policy or listed on the ID cards provided by your agency. The carriers we work with all have 24/7 emergency numbers. Our agency also monitors the phone for emergencies and will assist our clients in the event of an after-hours emergency. It is important to provide insurance emergency contact information to your horse’s caregivers so they know who to contact in the event of an emergency.

I would like to change my horse’s insured value. How would I go about it?

In a horse mortality policy, Full Mortality is the base coverage; it reimburses you up to the insured value of the horse for death, theft, and authorized humane destruction. If you think the Full Mortality Value/Insured Value of your horse has changed during your policy period, contact your agent. If you would like to request an increase in the insured value due to show results or professional training, your agent will provide this information to the insurance underwriter for a value review. If the insurance underwriter agrees with your requested value, a policy endorsement will be issued to increase the Full Mortality limit in your policy. If you would like to request a decreased value, this can be done at any time. Value changes can be requested at any time during the policy period; contact your agent to discuss the process. The available medical options may change if the full mortality value is changed.

My horse has changed careers. Do I need to let my insurer know?

The “use” of your horse refers to the job or jobs your horse performs, such as show hunter, show jumper, dressage, eventing, barrel racing, trail riding, roping, driving, or breeding, to name a few. If you decide to switch disciplines or add additional disciplines to your horse’s résumé, then that means the “use” of your horse has changed. For example, if you start jumping your dressage horse, start eventing your show jumper, move your event horse up a level, or decide to breed your horse, the “use” of your horse has changed. The insurance carrier requires notification of a change or addition to your horse’s use. The available coverages and insurance carrier ratings vary by use. If a change in use is not reported to the insurance company, your coverage may be impacted in the event of a claim.

I’m buying a new horse — how does that affect its insurance coverage?

In order to insure a horse, you must have an insurable interest. If you purchase a new horse in full and you are the only owner, you are the only party with a financial interest/insurable interest in the horse, and you need to take out an insurance policy in your name (or the name of the entity that owns the horse). The seller (if paid in full) no longer has an insurable interest in the horse, and any insurance on the horse carried by the seller ceases when the horse is sold. All parties with a financial interest in the horse must be disclosed in the insurance application (for example, owner, co-owner, lessee, loss payee, etc.). If the ownership interest in a horse changes at any time during the policy period, you need to notify your agent.

A few examples of changes in ownership include adding a co-owner, changing the ownership from an individual’s name to an LLC, or leasing your horse. The insurance carrier requires notification of any ownership changes at the time of the change or lease.

What happens if my horse is stolen or needs to be put down?

In the event of your horse’s theft or death, report the loss immediately to your insurance carrier. In cases of theft or vehicular involvement, such as a car accident, contact the police. Do not have your horse euthanized without authorization from your insurance carrier. If your horse is found deceased, report the death immediately. A necropsy will likely be required if the horse is euthanized or is found deceased. It is important to advise your horse’s caretaker of these loss notification procedures.

This article about horse insurance is a web exclusive for Horse Illustrated magazine. Click here to subscribe!

The post Your Horse Insurance FAQs appeared first on Horse Illustrated Magazine.

Base equine insurance policies begin with full-mortality insurance, which is essentially life insurance for your horse. Photo by Jump Media

Owning a horse can be expensive. Beyond the initial purchase price, other fees such as board, training, and showing fees can add up. A horse that becomes seriously ill or injured can cost you a fortune in veterinary bills. Should the worst happen and your horse dies, not only will you be emotionally devastated, but you will have lost your financial investment and be without the funds to buy another horse.

One way to protect your horse, and your pocketbook, is to purchase equine insurance. The right plan will help you control costs if your horse requires unforeseen medical care and will reimburse you for his value if he dies. Having equine insurance offers you peace of mind knowing that if something happens to your horse you can work on getting him the appropriate treatment and not worry so much about budgeting for large vet bills.

Buying a policy for your horse is different than buying any other type of insurance policy because you’re so attached to the animal. Photo by Jump Media

Getting Started

To find an equine insurance agency, ask your trainer, veterinarian, or a horse friend to recommend some options or do some research online. Be sure to call a few different companies to see which sounds like the best fit for you. Equine insurance policies are customizable, so the agent will go over each type of coverage available, explain different options, and give you a quote.

Base policies begin with full-mortality insurance, which is essentially life insurance for your horse. This reimburses you the insured value of your horse in the event of death due to any cause, but it also includes theft and has provisions for humane destruction.

Many owners choose to add major medical to their full-mortality base policy, which covers non-routine veterinary expenses up to a specified limit. This can include such costs as diagnostic procedures, surgery, medication, and veterinary exams associated with an illness or injury. It can be useful in a situation where your horse becomes ill and needs to go to a clinic for a few days, or if he becomes lame and requires advanced diagnostics or regenerative care. If you don’t want to purchase a full major medical program, you can choose pared-down medical coverage instead, such as medical assistance, a surgery-only policy, or a colic treatment and surgery option.

It is important to know that policies are reviewed for renewal by the insurance company’s underwriters each year to advise coverage options for the upcoming year. For example, if your horse colics and needs surgery, the policy may not cover colic when it is renewed the following year.

At age two, a horse can be insured at the standard rating for his use, like as a hunter or jumper. Photo by Jump Media

Common Equine Insurance Questions

It’s important to ask your insurance agent questions about the policy ahead of time so that you have a clear understanding of what’s included. Here are a few questions that many owners have when purchasing policies for their horse.

How do you determine insured value?

First, you start with the horse’s purchase price. You can include any sales commissions as well. If you have owned the horse for a while, you may be able to insure it for a value higher than the purchase price. The agency will submit competition records, along with the value you intend to insure for, to the insurance carrier. This information helps the carrier to decide whether or not to approve that proposed value. For young horses, you can also include training fees as justification for the horse’s value.

At what age can you insure a horse?

You can begin insuring a horse at 24 hours of age. The rate to insure a horse from 24 hours of age to 30 days is higher, so if you start that young, you will pay a little bit more. If you wait until the foal is 31 days, it’s less expensive. The rate goes down each year until the horse is two years old, and then he can be insured at the standard rating for his use, like as a hunter or jumper.

A horse can have full mortality and medical coverage through age 20, though the rate for the full mortality increases each year after age 16. Sometimes, a customer will decide to reduce the value, so they’ll keep their premium close to the same, but they can continue to insure and get medical coverage.

How expensive is equine insurance?

Insurance premiums are based on your horse’s age, use, and value of your horse. As mentioned above, as your horse gets older (over 16), the rates go up. However, for ages 2 through 15, most carriers will write the standard rating.

Because you can customize your policy, you may choose to insure your horse for a value less than his current market value. You can come up with an amount that fits into your budget. For example, say your horse is valued at more than $30,000, but when you get the premium quote, you decide you’re more comfortable paying the rate for a value of $25,000. You can still get the major medical add-on, and if he were to die, you can still recoup a good portion of your investment.

Buying a policy for your horse is different than buying any other type of insurance policy because you’re so attached to the animal. It can be an emotional process for you if your horse becomes ill or injured, or worst-case scenario, dies. Being able to have an open and honest dialogue with an experienced agent that you feel comfortable with is an important factor in making sure you have all the answers you need.

Further Reading

• Six Types of Equine Insurance
• About Horse Riding Insurance
• How to Budget for Vet Bills

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The post Equine Insurance 101 appeared first on Horse Illustrated Magazine.