Loss of Use Coverage
One of the most misunderstood equine coverages. Loss of Use addresses a gap mortality insurance does not fill: when a horse can no longer perform but is still alive.
How Loss of Use Works
The Scenario
A $50,000 reining horse suffers a career-ending suspensory ligament injury. The horse is otherwise healthy and has a good quality of life — but will never compete again. Mortality insurance does not apply because the horse is alive. Without Loss of Use coverage, the owner absorbs the entire economic loss.
Coverage Mechanics
- Pays a percentage (typically 50–60%) of the insured value
- Requires veterinary confirmation that the horse is permanently and irreversibly unable to perform its insured use
- "Insured use" is defined in the policy — this is why accurate disclosure of the horse's primary use at application is critical
- The horse typically remains with the owner after a Loss of Use claim
Important Distinctions
- Permanent: Temporary inability to compete is not Loss of Use. The condition must be irreversible.
- Specific to insured use: If a horse is insured for "show jumping" but can still be used for trail riding, Loss of Use may still apply — it cannot perform the use for which it was insured.
- Not a mortality claim: The horse is alive. Different claim process, different documentation requirements.
Common Dispute: Disagreements about whether a condition is truly "permanent" and "irreversible" are common. Multiple veterinary opinions may be required. The insurer may request an independent examination.