Horse Insurance: The Critical Importance of Full Disclosure

By Laura Connaway of Connaway & Associates

Securing horse insurance is a crucial step in responsible ownership, requiring careful attention to both coverage details and the duties of all parties involved. Understanding the distinct roles of agents, clients, underwriters, and claims adjusters, the necessity of full disclosure, and how transparency impacts any claims can help you avoid costly surprises and ensure your horse is properly protected.

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.

Laura Connaway is an amateur grand prix level jumper rider and President of Connaway & Associates Equine Insurance Services, Inc., which she founded in 1992; Connaway & Associates is licensed in 48 states and DC. For further information on the products and services Connaway & Associates offers, or for a no-obligation chat, please call (501) 868-8084, email office@connaway.net, or visit https://www.connaway.net.