Loaner choosing not to insure - how to a word the contract??

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smirnoff_ice

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Dolly's gone on 2 year loan and the loaner has decided to only insure her for 3rd party liability. How do i word the contract to say that if Doll requires any vet treatment, the loaner is responsibe for footing the bill?? I've got the BHS agreement, but need to re-word it.

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I'd just put it as plainly as "Any fees for required vetinary care or medications will be met by the loanee". Think that was what was in mine - don't think they need to be in legal terms as long as it's clear who's responsible for what. You might also want to consider making it clear that it is them that is responsible for getting the vet out should it be necessary.
 
I think you should insure her yourself or insist that they do! Better to be safer.
Imagine something happened and they refused to pay up, how liable would she be even if it is in the contract?

Perhaps someone else will know more than me and perhaps the contract is enough cover but would it not involve claims court etc?

Will be interesting to see what other people have done, hope you get it sorted xx
 
Personally, I would insist on the lonee taking out vet fees insurance for your horse.

What if something major goes wrong (eg tendon problem) and she brings the horse back to you? You would end up footing the bill yourself.

Personally, I would arrange the insurance myself, in my name, and then pass the cost on to the loanee. Failing that I would get the loanee to insure your horse and then ask to check the paperwork at least once per year to make sure she keeps it up.
 
I would want her insured so word it in the agreement that this has to be met by the loanee. We have had a number of horses on loan and always pay what the owner was paying previously. The only horse we didn't was because the owner didn't bother with insurance!!!!! And her horses were worth quite a large amout.
 
I put in that in the event of anything happening to horse resulting in death/injury or that incurrs vets fees and the horse is not insured then full liability for these fees falls with the Loanee, and in the event of death the loanee shall be liable for the full cost of the horse (I put Purchase value as to replace him would have been about 3k now) unless another party is liable i.e Vetirinary malpractice.
 
Make sure that it states (not sure on exact wording) that if the horse falls ill and is getting long-term treatment, that they cannot turn round and say they want to return the horse - they have to pay for the treatment until the horses illness goes.
 
its in my contract that the loanee insures the horse - if they chose not to all vets fees would fall to then, including any ongoing treatments should the horse be returned with a injury

ie horse does ligament - loanee returns - insurance would usually cover recovery treatment - where insurance was not taken out the loanee is liable untill the horse is well and recovered. ie - clean bill of health
 
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The owner would normally insure - not the loaner......

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That isnt always true...My full loan is insured by me, with shares i think the owner should insure
 
[ QUOTE ]
[ QUOTE ]
The owner would normally insure - not the loaner......

[/ QUOTE ]

That isnt always true...My full loan is insured by me, with shares i think the owner should insure

[/ QUOTE ]

The key word here is normally - not always
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Parties to a loan agreement can agree what they like, you just need to have thought about it in advance, agree it and make it clear in the wording what happens so that there is as little ambiguity as possible.

I have loaned horses out and continued the insurance myself, though the loanee has paid the premium. In this case you must tell the insurers just in case it invalidates your insurance. To give you an example, the wording could be along the lines of "The owner / loanee will insure the horse with a reputable insuarance company for [specify your risks eg veterinary, theft, death, loss of use etc - I would always include personal liability here as you don't want to end up picking up the tab if a third party gets injured by your horse whilst out on loan - this can happen occasionally] and will ensure that the insurance is kept on foot at all times. The owner / loanee will give a copy of the insurance contract to the [other party] and the [other party] will co-operate at all times in respect of any claim that is made under the insurance. The owner / loanee will ensure that any excess not covered by the insurer is paid". (Please note that this is not intended to be legal advice, just a bit of help for you).

This is just a short example of that clause, and you will need to include other stuff such as notifying the owner if the horse needs veterinary treatment as soon as reasonably possible etc unless there is an urgent need to end a horse's suffering in which case I think it would be sensible to let them make a decision to euthanase based on a vet's advice, as awful as that would be.

Loan agreements are not easy to get 100% right without legal help.

Hope this helps and good luck.
 
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The owner would normally insure - not the loaner......

[/ QUOTE ]

Every horse I've ever loaned, I've had to pay the insurance...and, as part of the agreement, it had to be the same level of cover as the owner had....and considering a horse had to be put to sleep whilst I had her, after 6 weeks of intense treatment, it's a good job too really!
 
I don't think that the owner 'normally' pays the insurance.
Have seen far more loaners pay it than owners.

Back to the OP - I'm sorry but I would insist the hrse is insured, not necessarily for full value but definitely for vets fees.
 
the pony we have out on loan, his loaner pays his Insurance, in contract we have the amount he must be insured for, and also that if for any reason the Insurance should laps, the loaner in responsible for all vet bills, in the event of death the loaner is liable for replancment at the insured value
 
Thank you for all of your replies! The lady who's loaning her has 4 other horses of her own (Dolly is for her daughter), and has never insured them. She's got 11 acres of land at her house and 5 stables, plus an arena - she's rather well-off i think!
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I DO trust her - she's always giving me updates and allowing me to go and see her and i really can't see that if anything were to happen, she'd refuse to pay the vets bills. They're a really lovely family and i wouldnt leave Doll with them if i thought otherwise.
I've managed to word the contract ok i think, so i've taken it up to her today and left it with her to have a read through.

Thank you all again!
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Lou. x
 
I would put something that says it all clearly:

The loaner agrees to insure the horse fully for vets fees, third party liability, etc etc (whatever you would normally insure her for). If the loaner fails to insure the horse fully, the loaner agrees that they will be liable for any and ALL vets fees arising during the period of the loan, and that should the horse require veterinary treatment, the loaner must continue to pay until the treatment is completed. Should it be found that the horse required veterinary treatment because of negligence on the part of the loaner, the owner reserves the right to remove the horse without notice and the loaner agrees to pay for ALL and any subsequent veterinary treatment fees arising from their negligence

Something like that anyway.

TBH I wouldn't send my horse out on loan if the loaner won't insure them fully. I have kept on my own policy for my Welshy and the loaners just pay me the fee every month. That way if anything happens and they decide to return him while he's under treatment, my insurance company will still be paying out.
 
It doesn't matter how nice someone is - if your horse needs expensive treatment you might suddenly find a nice lady who seems to have lots of money dumps a poorly horse on your doorstep because she doens't want the hassle.

Agree with B&J here, make sure it's insured fully. If you want to make sure she pays up then you need it in writing, and I would have it checked by a solicitor as well as unless it's water tight, she might just find a way to wriggle out of it.
 
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