ASKHQ: How does non-disclosure affect horse welfare, legal liability and insurance?

Answered by Hollard Equipage

A: Transparency is a critical part of any successful horse sale, insurance application, or ownership transfer. Yet many challenges arise when important medical, behavioural, or management information is not openly shared. When key details are withheld, intentionally or unintentionally, the consequences can affect buyers, sellers, insurers, riders and of course the horse.

With horse prices rising, the competition environment already highly active, and upkeep becoming more expensive, the impact of non-disclosure is more significant than ever.

Non-disclosure influences:

• Insurance decisions and claims outcomes
• Legal liability
• Financial risk for buyers
• The well-being and safety of both horse and rider

Withholding information can have far-reaching consequences, particularly with high-value and high-risk animals, where both welfare and safety must be carefully managed.

What is non-disclosure?

Non‑disclosure occurs when a seller fails to share material information that could reasonably influence a buyer’s decision on whether to buy the horse or not, or the terms around the purchase.

A material fact is any detail that might cause a buyer to:

• Change their decision to follow through with the sale
• Adjust the price they are willing to pay
• Change other material terms of the contract
• Make different management choices

Examples of information that should be disclosed:

• Previous colic surgery or recurring colic episodes
• Chronic or recurring lameness
• Kissing spine
• Dental records
• Ongoing medication or joint treatments
• Past tendon or ligament injuries
• Ulcers
• Behavioural issues or dangerous tendencies
• Any other significant physical or behavioural problem

A horse is a complex animal to manage. When key information is withheld, the new owner may incur significant costs on diagnostic work to identify issues the seller was already aware of. This causes frustration, financial loss, and needless suffering for the horse.

What should buyers do?

Buyers have a responsibility to take reasonable steps to understand the horse they want to purchase. This includes:

• Arranging a pre‑purchase veterinary examination
• Asking for a full medical history
• Checking performance records
• Asking direct questions about past injuries, medication, and behaviour

However, buyers must understand that a vetting cannot always detect:

• Historical behavioural issues
• Old injuries
• Previous colic episodes
• Joint treatments
• Previous surgeries

Due diligence is important, but it can never replace honest disclosure from the seller.

The Voetstoots Clause: What it does and does not protect

Many sellers rely on the ‘voetstoot’ (sold as is) clause, but it does not protect a seller who is dishonest.

A seller cannot use voetstoots to escape responsibility if they:

• Knew about a material defect and intentionally failed to disclose it
• Knowingly left out critical medical or behavioural history
• Knowingly provided misleading information
• Knowingly sold a horse while it was medicated without declaring it
• Sedated the horse for viewing or for the vetting

Intentional dishonesty may lead to:

• Refunds
• Liability for injuries
• Veterinary expenses
• Training costs
• Legal fees

Ethical sellers disclose all relevant information, not only the positive aspects.

Non-disclosure and insurance

Insurance relies heavily on honesty and good faith. If you have just purchased a horse, make sure you do your due diligence and buy from reputable sellers. Make sure when you complete the insurance application form questions that you answer the required questions honestly.

Most insurers assess risk upfront, so difficult conversations should happen early.

Non‑disclosure can lead to cancellation of policies, rejection of claims, higher premiums across the industry, and loss of trust.

Transparency protects everyone – especially the horse

South Africa’s equine market is vibrant and deeply passionate, yet a lack of transparency continues to result in financial loss, emotional distress, and welfare concerns.

Full disclosure is everyone’s responsibility. It ensures buyers understand exactly what they are committing to, sellers act with integrity, insurers can assess risks fairly, and most importantly, horses receive appropriate care and management from day one.