Your Warmblood jumper was worth $80,000. He came up lame after a show. The MRI shows a severe tear in the suspensory ligament. The vet says, “He will never jump 1.40m again. He might be a trail horse.” You file a “Loss of Use” claim. The insurance company offers you a choice: Take the money and they take the horse, or take less money and keep him.
Key Takeaways
- Permanent Uselessness: Loss of Use (LOU) pays if the horse is permanently incapacitated for its insured use (e.g., Jumping).
- External Trauma vs. Degenerative: “Accidental LOU” (cheaper) only covers external injuries (trailer crash). “Full LOU” (expensive) covers ligaments/tendons.
- The 50% vs. 100% Payout: Most LOU policies pay 50-70% of the horse’s value, not 100%.
- The Salvage Right: If the insurer pays the claim, they theoretically “own” the horse. They can take him. Usually, they let you keep him but brand him as “LOU Paid.”
The “Why” (The Trap): The “Any Use” Definition
Insurers define disability differently.
The Clause:
“The animal must be totally and permanently unfit for the use specified in the policy.”
If your policy says “Show Jumper,” and he can’t jump, you get paid.
If your policy says “Sport Horse,” and he can still do dressage or trails, they might deny the claim because he is still “useful.”
The Investigation: The Claim Process
I spoke to a specialized equine adjuster.
- The Vet Report: You need a definitive diagnosis. “He might get better in a year” results in a denial. You need “He will never recover.”
- The Treatment Period: Insurers will make you try rehab (PRP, Stem Cell) for 12 months before paying LOU. They don’t pay out immediately on a soft tissue injury.
Carriers
- Markel: Offers LOU but requires strict vet exams and X-rays to bind coverage.
- Great American: Has varied LOU percentages (e.g., 60% payout).
Comparison Table: LOU Options
| Option | Payout % | Horse Ownership |
| Insurer Takes Horse | ~70-100% | Insurer takes horse (rare) |
| You Keep Horse | ~50-60% | You keep horse (retired) |
| Accidental LOU | Fixed % | Only for collisions/visible trauma |
[IMAGE: Photo of an MRI scan of a horse’s leg showing a ligament tear]
Step-by-Step Action Plan
- Check Your “Use”: Look at your policy application. Did you list him as “Jumper” or “Pleasure”? “Pleasure” makes LOU very hard to claim.
- Get the MRI: X-rays aren’t enough for soft tissue. You need proof of permanent damage.
- Prepare for Rehab: Be ready to treat the horse for 6-12 months. The insurer won’t pay LOU until the “wait and see” period is over.
- Negotiate the Salvage: If they approve the claim, ask to keep the horse. They don’t want a lame horse. They will usually deduct a “salvage value” (e.g., $1,000) and let you keep him.
FAQ
Can I ride him after getting paid LOU?
Technically, yes, but only within his limits. If you cure him and start showing him again, you committed fraud.
Does LOU cover arthritis?
Usually NO. Degenerative conditions (navicular, arthritis) are often excluded or considered “wear and tear.”