A Guide to Insurance for a Horse on Loan
Whether you are looking to loan out a horse you own or loan a horse yourself, there are many things to consider, horse insurance is just one of these.
What are you responsible for when loaning a horse?
Before entering into a loan agreement, both parties must agree on the terms. These should cover:
- The length of the loan period.
- Who pays for livery, feed, farrier, worming, and veterinary costs.
- What activities the horse may be used for.
- Who is responsible for insuring the horse.
A written loan agreement is essential to confirm these details and avoid misunderstandings.
Who Arranges the Insurance?
The responsibility for insurance is decided between the owner and the loanee:
- If the horse is already insured: The owner may keep the policy in place to ensure continuous cover. The loanee can then reimburse the premiums, either monthly or annually. In some cases, the loanee can be added to the policy, giving them authority to discuss cover with the insurer or make adjustments.
- If the horse is not insured: The loanee can take out a new policy, provided no existing cover is active for that horse.
Can You Insure a Horse You Don’t Own?
Yes. If you take a horse on loan, you are typically responsible for veterinary costs and may also be liable for damage or injury caused to others. At minimum, public liability insurance is strongly recommended. You can also take out veterinary fee cover to protect against unexpected costs.
Please note: KBIS applies a 45-day waiting period on new loan horse policies to prevent claims for pre-existing conditions.
The Importance of a Loan Agreement
A loan agreement is vital. It should:
- Define responsibilities and financial commitments.
- Detail how the agreement can be terminated.
- Clarify who makes decisions in emergencies, such as authorising euthanasia.
The British Horse Society provides a useful loan agreement template.
Documents Required for Insurance
When insuring a loan horse, insurers will usually request:
- A copy of the loan agreement (to confirm responsibilities and claims payment details).
- The horse’s veterinary history while in the owner’s care.
- Additional documents, such as a vetting report or x-rays, depending on the horse’s value and level of cover.
Is Insurance Compulsory?
There is no legal requirement to insure a horse on loan. However, public liability cover is strongly advised. Owners and loanees should agree whether additional insurance (e.g., veterinary fees, mortality cover) is required and include this in the loan agreement.
Short-Term Cover
KBIS does not offer short-term loan policies. Instead, you must take out an annual policy. Policies include a 14-day cooling-off period, during which you can cancel for a full refund (provided no claims have been made). After this, you may cancel at any time, with a pro-rata refund.
Looking for more insurance insights? Take a look at our article on how to work out how much to insure your horse for.