Whether you are a one horse owner, private yard proprietor or have an established livery yard, public liability insurance is one area of cover that shouldn’t be overlooked; and with periodic payment orders (PPOs) now increasingly being used to settle serious injury claims, it is just as important to ensure that you not only have cover in place but make sure it is adequate.
Periodic payment orders mean that instead of a single lump sum being awarded to the claimant, they will receive an initial, albeit smaller lump sum, with additional compensation paid at regular intervals, usually annually.
Traditional lump sum payments require a number of assumptions to be made, namely the claimant’s life expectancy and future cost of any ongoing care. This therefore opens up a margin of error, which can result in a claimant being over or under paid. PPOs were introduced to overcome these shortfalls and assist claimants by providing a certainty of funds for the duration of their lifetime and offer greater financial stability. While PPOs provide a degree of certainty for the claimant, for those held liable there is less certainty as to the total amount that will be payable, as well as the potential to cost significantly more.
Liability claims are often complex and take time to resolve, whilst your insurer will always deal with a claim on your behalf, when it comes to settlements you are only covered up to the limit of indemnity purchased. Whilst individual settlements may differ, a claim with a large PPO could quickly reach the limit of indemnity exhausting the cover provided by your insurance.
At KBIS we offer a choice of cover; cover up to £2,000,000 per incident is available on a individual horse insurance policy whilst stand-alone liability policies, for individual and multiple horses or in connection with an equestrian business, can include cover up to £10,000,000.
“Did you know adding public liability cover to a horse policy can cost as little as £22.40 (including IPT) for up £2,000,000 cover?”