Equine Law Blog

The Case

The case involved a hunter/jumper show horse that was insured under a policy of equine mortality insurance. While under a lease arrangement to a trainer, the horse sustained an injury, but 15 days passed before anybody notified the insurer. By then, the horse’s condition had worsened to the point where the owner’s veterinarian recommended euthanasia. The owner arranged to have the horse euthanized and then submitted a claim for insurance benefits.

In response to the claim, the insurer conducted an extensive investigation and thereafter denied coverage. It believed that the owner failed to satisfy conditions in the policy, one requiring that the owner give the insurer “immediate notice” of the horse’s illness, injury or lameness. The owner, argued, among other things, that he was unaware of his horse’s lameness problem because the horse was under a lease and out of state. Rejecting that argument, the Court cited policy language that the notice condition applied “whether you have personal knowledge of such circumstances or events or such knowledge is confined to your family members, representatives, agents, veterinarians, employees, bailees, co-owners or other persons who have care, custody or control of [the insured horse] at any time."

As a result, the court sided for the insurer and dismissed the case. It found that the owner’s 15-day delay before notifying the insurer of the horse’s lameness was not "immediate notice" as the policy required, and the horse owner could not recover under the policy as a result.

Avoiding Disputes

Here are a few suggestions for avoiding disputes with your insurer:

• Read Your Policy. Since notice requirements can vary from company to company, read your equine insurance policy carefully so that you know when the insurer expects you to give notice of your horse’s illness, lameness, or injury, and to whom the notice should be directed.
• Direct the Notice Call Properly. Your policy, or information provided with it, will specify the name and phone number of the person or company that your insurer designates to receive notice. The agent who sold you the policy may not be the right one to call. Giving notice to the wrong person could potentially be treated as giving no notice at all.
• Keep - and Share - Your Insurer’s Notice Contact Information. Insurers often send, along with their insurance policies, handy cards that provide the designated (800) number to call to notify the insurer. Keep the information in your purse or wallet and share the information with others who are caring for your horse such as the trainer and boarding stable.
• Equine Professionals: Encourage Your Clients to Share and Update Insurance Information. If an insured horse's condition takes a turn for the worse, and if the owner cannot be reached, horse trainers and boarding stable management might need to contact the insurer on the owner’s behalf. With that in mind, encourage your clients to provide the most updated (800) emergency contact numbers for each horse's insurer.

Conclusion

Insured horses are the subject of a contract that requires special attention and action, such as notifying the insurer if the horse becomes injured or ill. Your compliance will help avoid disputes.