Another insurance question!

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GrumpyHero

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Ok so my new boy is coming on saturday on full loan for 6 months with view to buy.

I'm paying for his insurance, and am wondering whether i should be paying for loss of use? Obviously since the owner would get the payout. (I've got him insured for death and vets fees atm on the form) The owner hasn't requested anything as of yet but i want to have the insurance sorted before he arrives :)

Strawberries dipped in melted chocolate for anyone who replies :D
 
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What does your contract say about insurance?

If he tripped in a rabbit hole in your field and tore through a tendon that vet said would never recover, you'd pay the vet bill but - under your loan contract, are you allowed to return a lame horse without any consequence?

If he died the owner would get the pay out - what is the difference between the two?

I'd talk to the owner and seek their views too.
 
(6) It is understood by the BORROWER that he is responsible for ensuring that the HORSE is fully insured for veterinary treatment, third party liability, etc at all times for its full value and the liability for payment of the aforesaid insurance lies solely with the BORROWER. If the BORROWER fails to insure the HORSE the BORROWER assumes full liability for any loss or damage, including 3rd party legal liability.
Click to expand...

This is the insurance section of the contract. Looking at it again i will need to get 'etc' clarified by the owner as it leaves it very open ended :)
 
As it stands you are responsible for any loss, so if the horse comes to you worth (guessing) £4,000 and you send it back worth £nil as he's broken! then the owner has incurred a loss of £4,000 for which you are fully responsible.

Definitely double check with the owner and I'm guessing you'll need full LOU cover as well.
 
Thanks guys, i'll give her a call later so she can clarify exactly what she wants him covering for (even though he isn't insured with her atm)
 
It is worth making sure the wording in the Loan Agreement reflects the outcome of the conversation with the owner as no doubt most insurers would look at that in the event of a claim. :)
 
I used to work with one of the more popular equine insurers, they would pay the policyholder in the event of a mortality/LOU claim.
They would however take owners name & contact details to write to them to inform them of the policy that had been taken out if horse was on loan & disclosed as such.
So therefore it would be up to owner/loaner to set out in contract who receives what payout in the event of such a claim.
And yes, we did have disputes where horse insured by loanee & kept the money after a LOU/mortality claim!
 
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