BHS loan template, question

[Laureltree]

Has anyone used this template? We are hoping to loan a horse and have been sent a version of it to sign.

The BHS loan template says:

8.2 “If the Borrower fails to insure the Horse and its effects the Borrower assumes full liability for any loss or damage, including any third party liability.”

I take that to mean that if the horse were to die, the loaner would be liable to pay the owner the value of the horse. Am I reading that right?

Can anyone corroborate that?

 

[The Xmas Furry]

Ask for this section to be struck out.
Better that the owner maintains the insurance and you pay them, if that's possible. They have peace of mind that the animal and the equipment is adequately covered.

That section currently reads that the loaner (if not got right insurance for horse and its equipment) is liable for thr horse having injury, death, sickness, replacement equipment, any damage done by the horse to 3rd parties - for example kicking a car in the car park and causing damage, spooking and knocking a cyclist off.... so many more...

 

[Equi]

You can just edit it and add it in to clearly stipulate that you intend this to mean the horse.

 

[mavandkaz]

I've just edited the agreement for my own horse going out on loan.
I can't remember the wording of the rest of that section, but I think it's talking about liability insurance, rather then horse insurance. I.e if the loanee doesn't have public liability, they are responsible for covering any costs incurred due to damage caused by horse in an accident.
Insuring the horse is a separate subsection, which would cover death of horse (which is also mentioned). It does also suggest that the loaner may need to keep insurance in their name, and recoup payment from loanee separately.
The owner may have edited it badly.

 

[Fred66]

I've just edited the agreement for my own horse going out on loan.
I can't remember the wording of the rest of that section, but I think it's talking about liability insurance, rather then horse insurance. I.e if the loanee doesn't have public liability, they are responsible for covering any costs incurred due to damage caused by horse in an accident.
Insuring the horse is a separate subsection, which would cover death of horse (which is also mentioned). It does also suggest that the loaner may need to keep insurance in their name, and recoup payment from loanee separately.
The owner may have edited it badly.

It is not always easy to get insurance on a horse on loan, insurers quite often require the keeper and insurer to be the same person

 

[Tiddlypom]

It is not always easy to get insurance on a horse on loan, insurers quite often require the keeper and insurer to be the same person

In my case the insurers (SEIB) were happy to insure my horse, but they asked for a copy of the loan agreement and details of the loan home. The insurance was in my (owner’s) name.

I would always suggest that the owner takes out any insurance and, if wanted, gets reimbursed for the premiums from the person who is loaning the horse. That way the owner keeps control of the cover.

The BHS loan agreement template is good base document, but you can tweak it to suit.

 

[Polos Mum]

For both loaner and loanee sake I think the insurance should be held by the owner and (if negotiated as part of the deal) premiums paid by loaner to owner.

If something happens and the horse is ill / injured the loaner can reasonably hand the horse back and the owner won't be able to get insurance for a pre-existing condition.

On death payout it'll get messy too as the loaner hasn't lost anything of value to them - the owner has suffered the loss.

 

[Orangehorse]

Yes agree with the above. The owner should insure their horse, theirs would be the loss. Whether or not you ask the loanee to pay is up to you. They should have 3rd party insurance anyway.

I have found insurance companies very understanding when it comes to horses being taken on loan or loaned out.

The BHS loan agreement is just a guide, you can alter it to suit your own circumstances. It just highlights things you should think about and might not have thought of.

 

[MiJodsR2BlinkinTite]

Sorry but these BHS templates are nothing but a dogs-dinner.

Total waste of time.

 

[Tiddlypom]

Sorry but these BHS templates are nothing but a dogs-dinner.

Total waste of time.

Far from it. They are a very useful basis to set out expectations on both sides.

Use of a loan agreement will flush out many a timewaster.

 

[MNMyShiningStars]

We edited it so that we as owners paid to insure the horse when she went on loan. Luckily we did as she ended up in the vets and insurance paid out for this.