Help with a loan agreement (& insurance recommendations)

[TPO]

So it's looking like mum is going to be taking a horse in long term loan from a friend of mine.

The currently verbal agreement is just that if mum wants to return him at any point my friend will have him straight back. He was gifted to her to guarantee his future once he retired from racing (trotter) but my friend no longer has the time now that her two youngest are riding and becoming more involved with Pony Club etc

Hes a bomb proof hack and hes hacked alone past my parents place many time and we've all seen fb photos and videos of him hacking in every far flung corner of the county. My friend is fearless hacking and hacks him along 60mph roads that are heavy (lorry) traffic areas and he doesnt blink an eye. Hes pretty much a bay unicorn!

Hes also very sweet to handle and is regularly lead by his owners 3yr old who also sits up on him and toddles about on him. The need for him/any horse to be so quiet is that mum fractured her wrist getting bucked off Fat Cob (her fault) last october and despite surgery and whatnot she still cant close her fist and doesnt have any grip strength in that hand.

There is a semi urgent need for another horse because I'm (finally!) moving to a new house at the end of June and am looking for a yard to move my horse to that will be close to new house. That would leave Fat Cob alone so he needs company. Mum is still planning on restarting Fat Cob (?) but wants something to get her seat and strength back on and one that's more enjoyable!

So basically what sort of agreement would you put in place? I'm aware of BHS agreement but can anyone think of anything else to add in to protect both parties?

Mum will pay all vet/dentist/farrier/saddle fitter/physio costs. Hes coming without tack; Vinnies saddle might fight (its adjustable) and will get a fitter before he starts ridden work. Any vet bills incurred while he's here will be covered too (insurance company recommendations welcome).

I can only see him being returned if something happens to Fat Cob and only one is left again. Just want to make sure it's all above board and each party is happy with the agreement.

Friend is less than 3miles from parents place and hacks past regularly so she will see him and can visit any time she wants. She can ride her oldest daughters new horse and one of their others so she doesnt have a need for a riding horse so she cant see ever needing horse back but will of course take him back.

Sorry big ramble about nothing. Basically given all the scary loan stories on here does anyone have any lessons learned and things that they would have implemented?

Very excited for him to arrive and it does seem the perfect solution for all parties

 

[Reacher]

I don't have much advice, other than I'd use a standard template and put what you have written above about what you will provide - more for the loaner's peace of mind and also how much notice either party requires to return him. I just posted to say I'm pleased you have found such a nice sounding horse to loan as they can be hard to come by. Wishing your mum lots of fun with him

 

[Meowy Catkin]

He sounds like a super horse and I hope your Mum has a wonderful time with him.

When I had a pony on loan years ago what he came with wasn't written down and it would have made life easier when he went back to have had a list of everything that needed to be returned with him. His bridle had broken and I had replaced the cheek pieces to fix it. The owner did notice but was happy with a like for like replacement.

 

[Bernster]

Def a good idea to use the bhs template and go from there. Really think about the worst case scenarios and agree what happens - unsuitable horse, unsound, vets fees, your change in circs. Helps not just to have it in writing but to use this to discuss and ensure you are all on the same page.

 

[Trouper]

Agree use the BHS as a template and then add in everything personal to the horse and the parties involved. It may sound overkill for an agreement between friends but it is surprising what gets forgotten over time. I also added in an inventory of tack/rugs etc as an annex which was very useful when I had to recover the horse from a (very difficult) loaner.

 

[MiJodsR2BlinkinTite]

You will need to arrange some insurance; that needs to be either the owner(s) or yourselves. You would also be strongly recommended to take up something like BHS Gold to insure you as the rider.

Yes I know it is morbid, but I would strongly urge all parties to consider a "euthanasia clause" which basically says words to the effect that " ........should there be immediate and urgent concern for the horse the vet will be called whilst at the same time an attempt to contact the owner(s) will be made; however if in the event that the owner cannot be contacted after repeated efforts to do so and if in the opinion of the attending vet the only possible option for humane reasons is immediate euthanasia, this will be implemented and the owner will be liable for all costs arising thereof including disposal fees". At the end of the day you will need to cover yourself; nothing worse than having a colic or something which isn't looking good and you've got no protocol in place. Have a plan in place so that both parties know what will happen in the event of an emergency (which naturally you hope will never happen, but you need to prepare in case it does).

Also you need to put in place arrangements should the owner wish to visit and/or ride the horse, as well as a list of equipment supplied with the horse and the condition it is in; photos as well so that condition can be established.

Basically think of everything but everything that could ever go wrong, and consider how you might mitigate for if it did!!

I've been both a loaner AND a loanee; key words are COMMUNICATION, TRANSPARENCY & TRUST. Keep talking with the owners; any problems then talk to them first and foremost and not everyone else. Keep them in the frame and consult about things like choice of farrier, vet, saddle fittings etc. This is vital IME.

 

[Patch55]

How exciting for you and your mum ?

The problem I am currently facing is that although horse is insured, without history (he is 14) the insurance wont pay out for anything as they cannot guarantee it's not a "known" problem or something hes suffered with before. I would ask for the owner for access to vet history up front so that your insurance have a copy and you will know what exclusions there may be in advance of any emergency.

Also, a one month trial would be beneficial so that both you and owner have settling time!

Hope it all goes well!

 

[Tiddlypom]

The BHS loan agreement is a great starting point, just tweak it to fit.

https://www.bhs.org.uk/~/media/documents/welfare/british-horse-society-sample-loan-agreement.ashx

Re insurance, IMHO it's best if the owner insures the horse and the loaner reimburses them for the premiums.

 

[Polos Mum]

Owner should maintain the current insurance - if (worst case) anything happens and he has to be returned the owner can carry on with insured treatment.

If you / your mum insures then you will have to keep him long term to maintain insurance cover if things go wrong.

You can pay the owner the premiums if that's what you commercially decide.

 

[TPO]

Thanks for the replies

Plan is to have him for the rest of his life.

Heading back over tomorrow night for Hook to have a one handed ride on him and will speak to the owner then about an official agreement and to think on anything that she wants included in it.