South Africa’s most demanding show jumping class returns this week. The 61st Toyota SA Derby takes place at Kyalami Equestrian Park from 1 to 4 October 2026, over the 1,200-metre, 18-obstacle course format it has retained since it was first held in 1965. It is also the final leg of the Toyota Equestrian Series (Wanted Online, 21 September 2026; SA Show Jumping calendar).
Events like the Derby are a reminder of what sport horses are asked to do — and of how much owners invest to get them there. Years of training, competition entries, transport, farriery and veterinary care all go into a horse’s ability to perform. Which raises a difficult question that many owners never consider until it is too late:
What happens financially if your horse survives an injury or illness, but can never do its job again?
Mortality insurance pays when a horse dies or has to be humanely destroyed. Vet fee cover helps pay for treatment. Neither is designed for the horse that is alive, comfortable and cared for — but permanently unable to jump, compete or perform the discipline it was bought for. That is the gap loss of use horse insurance is designed to fill.
Quick Answer
Loss of use horse insurance pays a percentage of your horse’s sum insured if the horse becomes permanently unable to perform the specific use or discipline declared on the policy, as agreed by veterinarians. It is usually taken together with mortality cover. Some South African products publicly quote a benefit of 50% of the sum insured, while some international policies offer higher percentages at a higher premium. Typical exclusions include behavioural problems, pre-existing conditions and, in many wordings, degenerative conditions. Cover for that horse often ends once a loss of use claim has been paid. It is most valuable for competition, sport and young performance horses whose value depends on what they can do.
What Does “Loss of Use” Mean?
In equine insurance, loss of use means that a horse has become permanently incapable of performing the function for which it is insured — for example, show jumping, dressage or eventing — because of an injury, illness or disease that occurs during the period of cover.
Three words in that definition carry most of the weight:
- Permanently. A horse that needs six or twelve months of rehabilitation but is expected to return to its discipline has not suffered loss of use. The condition must be permanent.
- Function. The use declared on the policy matters. A horse that can no longer compete in show jumping may still be able to hack or perform lighter work — and may still qualify for a loss of use claim, because it cannot perform its insured discipline.
- Agreed. Loss of use claims are typically decided on veterinary evidence, often with the owner’s veterinarian and a veterinarian appointed by the insurer both confirming the diagnosis and prognosis.
Owner Insight: Loss of use is about the horse’s job, not its survival. It exists for the horse that is alive and cared for, but whose competition career is over.
Loss of Use vs Mortality vs Vet Fees
These three covers answer different questions. The table below summarises how they typically differ.
| Cover | What triggers a claim | What it pays | What it does not do |
|---|---|---|---|
| Mortality | Death of the horse, or humane destruction that meets the policy’s requirements | Up to the sum insured, subject to policy terms | Does not pay if the horse lives but cannot work |
| Veterinary fees / major medical | Treatment for a covered injury or illness | Treatment costs up to the policy limit, less any excess | Does not compensate for lost value if treatment fails to restore performance |
| Loss of use | Permanent inability to perform the insured discipline, confirmed by veterinary evidence | A percentage of the sum insured, as stated in the policy | Does not cover temporary lay-ups, gradual loss of form or behavioural problems |
Most owners who buy loss of use cover also hold mortality and vet fee cover, because the three work together across the full range of outcomes after a serious injury.
How a Loss of Use Claim Typically Works
Every policy has its own wording, but the process usually follows a similar path:
- An injury or illness occurs during the period of cover and is reported to the insurer promptly.
- The horse is treated under veterinary supervision, and a reasonable course of treatment and rehabilitation is followed.
- The prognosis becomes clear. If specialist veterinary opinion concludes that the horse will never return to its insured discipline, a loss of use claim is submitted.
- The insurer’s veterinarian reviews the case. Many wordings require the owner’s vet and the insurer’s vet to agree, with an independent referee if they do not.
- The benefit is paid as the percentage of the sum insured stated in the policy. Depending on the wording, residual value may be taken into account, or the insurer may have rights over the horse’s future use or ownership.
- Cover on that horse usually ends once the loss of use claim has been paid.
Claim Reminder: Loss of use claims succeed or fail on evidence. Prompt notification, a clear veterinary record and following your vet’s rehabilitation advice are all essential.
How Much Does Loss of Use Insurance Pay?
Loss of use benefits are normally expressed as a percentage of the horse’s sum insured. Some South African products publicly quote a benefit of 50% of the sum insured (FAnews, November 2025). Internationally, policies range more widely, with some offering higher percentages — or distinguishing between partial and total loss of use — in exchange for higher premiums (Horse & Hound, April 2025).
Your Equi-Cover policy schedule states the exact percentage and conditions that apply to your horse. The sum insured itself should reflect a realistic, supportable value — typically based on purchase price, breeding, training and competition record — and should be reviewed as the horse’s career develops.
Conditions That Commonly End Competition Careers
Musculoskeletal problems are the most common reason sport horses stop competing. The conditions below are frequently discussed in loss of use claims, although whether a particular case is covered always depends on the policy wording and circumstances.
| Condition | Why it matters for loss of use |
|---|---|
| Superficial digital flexor tendon injuries | Tendon injuries account for a large share of sport-horse injuries and have high reported re-injury rates (Frontiers in Veterinary Science, 2022). Rehabilitation commonly takes many months. |
| Suspensory ligament injuries (desmitis) | Prognosis differs by location: forelimb injuries often respond well, while hindlimb cases carry a more guarded outlook (Merck Veterinary Manual). |
| Navicular syndrome | Described as degenerative and progressive, often requiring long-term management (Merck Veterinary Manual). Degenerative conditions are excluded in many loss of use wordings. |
| Laminitis | Severe acute cases can carry a guarded to poor prognosis (Merck Veterinary Manual). |
| Kissing spines (impinging dorsal spinous processes) | Many horses return to some level of work after treatment, but outcomes vary with age and the number of vertebrae involved (UC Davis Center for Equine Health). |
| Cervical vertebral compressive myelopathy (“wobbler”) | A neurological condition in which substantial improvement is uncommon (UC Davis Center for Equine Health). |
| Fractures | Outcomes range from full recovery to career-ending, depending on location and severity. |
South African data points in the same direction. In a study of 250 horses that underwent standing CT imaging of the lower limb at a Johannesburg referral practice, among the 163 horses with a single imaging diagnosis, tendinopathy was the most common (20.3%), followed by fractures (11.1%) and ligament injuries (9.8%) (Mathee et al., University of Pretoria repository, 2022).
What Loss of Use Insurance Usually Does Not Cover
Exclusions vary between insurers, but the following are common across loss of use wordings:
- Behavioural problems and vices, such as refusing, bucking or napping, where there is no underlying physical cause.
- Pre-existing conditions, including anything that showed signs before cover started or was noted at vetting.
- Degenerative and “wear and tear” conditions in many policies, particularly in older horses.
- Temporary incapacity, where the horse is expected to return to its discipline after treatment and rest.
- Gradual decline in performance or age-related loss of form.
- Infertility or inability to breed, unless specific breeding cover has been arranged.
- Conditions arising during an initial waiting period, where the policy applies one.
- Failure to follow veterinary advice or to complete reasonable rehabilitation.
- A change of use or discipline that was not declared to the insurer.
Check this: Read the definition of the insured use on your policy schedule. If your horse has moved from young-horse classes to open show jumping, or from dressage to eventing, tell your broker so the cover matches what the horse actually does.
When Does Loss of Use Cover Make Sense?
Loss of use cover adds premium, so it is worth thinking about whether it fits your horse and your circumstances.
| Horse profile | How relevant is loss of use? |
|---|---|
| Competition horse whose value is tied to its results in one discipline | High — the gap between a competing and a retired horse’s value is usually significant |
| Young horse in training, bought as a future sport horse | High — much of the investment depends on future performance |
| Horse bought for resale after producing | High — a career-ending injury removes the resale value |
| Schoolmaster or amateur competition horse | Moderate — depends on value and how important the discipline is to you |
| Older leisure or hacking horse | Lower — its value is less dependent on a specific discipline, and age exclusions may apply |
| Breeding stock | Standard loss of use is generally aimed at ridden use; breeding-related cover is a separate question |
The key question is simple: If your horse could never perform its current job again, how much of its value would you lose? If the answer is a meaningful amount of money, loss of use cover deserves serious consideration.
Practical Steps to Protect a Future Claim
- Have the horse vetted before cover starts, and keep the vetting report.
- Insure at a realistic value and keep evidence: purchase documents, breeding records and competition results.
- Declare the correct use and update the policy when the horse’s discipline or level changes.
- Report injuries promptly — do not wait to see whether the horse comes right before notifying the insurer.
- Follow veterinary rehabilitation advice and keep a record of treatment, scans and progress.
- Keep good yard records, including farriery, vaccinations and exercise programmes.
- Talk to your broker early if a serious injury is being managed, so you understand the claims process before a final decision is needed.
Frequently Asked Questions About Loss of Use Horse Insurance
Loss of use horse insurance pays a percentage of a horse’s sum insured if the horse becomes permanently unable to perform the use or discipline declared on the policy because of an injury, illness or disease that occurred during the period of cover, as confirmed by veterinary evidence.
It pays a fixed percentage of the sum insured stated in the policy. Some South African products publicly quote 50% of the sum insured. Your policy schedule shows the exact percentage that applies.
Usually, yes. Loss of use is generally offered as an addition to mortality cover rather than as a standalone product.
Many loss of use wordings exclude degenerative conditions, and navicular syndrome and arthritis are often treated as degenerative. Whether a specific case is covered depends on the policy wording and the veterinary evidence.
In many cases, yes. Depending on the wording, the insurer may take residual value into account or have rights relating to the horse’s future use or ownership. Cover on that horse usually ends after the claim is paid.
Not usually. Loss of use requires a permanent inability to perform the insured discipline. A horse expected to return to work after rehabilitation is generally not a loss of use case.
No. Behavioural issues and vices without an underlying physical cause are a standard exclusion.
Yes. Equi-Cover, the equine insurance division of Cross-Cover Insurance Solutions, offers cover including mortality, veterinary care, loss of use, transit and liability, subject to underwriting and policy terms.
Key Takeaways
- Loss of use cover protects against a horse that survives but can never perform its insured discipline again.
- It is usually added to mortality cover and pays a percentage of the sum insured.
- Some South African products publicly quote a 50% benefit; your policy schedule states the exact figure that applies.
- Claims depend on veterinary evidence, permanent incapacity and following reasonable rehabilitation.
- Behavioural problems, pre-existing conditions and many degenerative conditions are commonly excluded.
- The cover is most valuable for competition, sport and young performance horses whose value depends on their discipline.
Protect Your Horse’s Value, Not Just Its Life
As the country’s best show jumpers head to Kyalami for the SA Derby, it is a good moment to check whether your horse’s insurance reflects what it really means to you — financially as well as emotionally. Speak to Equi-Cover, the equine insurance division of Cross-Cover Insurance Solutions, about mortality, veterinary and loss of use cover structured around your horse and its discipline.
Related Articles
- Horse Insurance in South Africa: The 2026 Guide
- What Does Horse Insurance Cover?
- How Much Does Horse Insurance Cost in South Africa?
- Horse Vet Costs in South Africa: Emergency Bills to Prepare For
- African Horse Sickness in South Africa 2026: What Horse Owners Need to Know
- Horse Theft in South Africa: How to Protect Your Horse and Your Investment
Sources
- Wanted Online — Toyota SA Derby returns to Kyalami for its 61st edition (21 September 2026)
- SA Show Jumping — Calendar
- FAnews — When a love for horses brings innovation to financial services (7 November 2025)
- Horse & Hound — How does loss of use insurance for horses work? (April 2025, UK)
- Melotti et al. — Frontiers in Veterinary Science (2022)
- Merck Veterinary Manual — Suspensory desmitis, Navicular syndrome, Laminitis
- UC Davis Center for Equine Health — Kissing spines, CVCM
- Mathee et al. — Standing CT study, University of Pretoria repository (2022)
Disclaimer: This article is for general information only and does not constitute insurance or veterinary advice. Loss of use cover, benefit percentages, definitions, conditions, waiting periods and exclusions vary between insurers and policies. Always refer to your policy schedule and wording, and consult your veterinarian about your horse’s health and prognosis.