# Lessee Insurance - Need Help!



## Jassie2018 (Mar 21, 2018)

Hi,


I am in process to lease a horse and when I received the lease terms – I got a bit concern about this paragraph: “In the event the Horse becomes ill or injured, Lessee shall notify Lessor immediately. Lessee will be held liable for any and all injuries/illnesses while in Lessee's use.”

The lessor was right upon front with me that he was injured in the past and that he had surgery and that he is now sound. Nevertheless, I would like to protect myself in case he falls ill or injuries himself again. 

Any recommendation on insurance companies that provide lessee insurance for a horse, or what other terms can I request from the lessor, or any recommendation how I can protect myself in case of a situation?


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## horselovinguy (Oct 1, 2013)

You may want to consult a lawyer about the wording of that contract to make sure you are "safe" or make amends to it that are agreeable to both parties.

No recommendations about insurance for leased horses but know it exists and many upper level performance horses are leased and contract requires a insurance policy be had.
Good luck.
:runninghorse2:.....
_jmo..._


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## beau159 (Oct 4, 2010)

Make sure the contract spells everything out. 

For example, if said horse colics and dies while in your care ... are you responsible to reimburse the lessor for his value ? I’ve heard of some lease arrangements to be this way. Thus it’s a good idea to have mortality insurance on the horse. 

Major medical insurance is also an option but it is usually quite a bit more expensive than mortality policies. 

Personally, I would put something in the contract that excludes you from paying for any complications from his PREVIOUS injury (such as a re-injury), but that’s just me. 

You don’t have to have insurance on the horse, but these are things to think about and discuss fully with the owner so that you have a clear understanding of what you will be responsible for.


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## jaydee (May 10, 2012)

You shouldn't have a problem finding an insurance that will cover you for vet costs and third party liability while the horse is in your care but as you won't own the horse I think the owner will still have to maintain the Mortality insurance and Loss of Use insurance. That could mean you both having to use the same company with some form of an agreement in place that the company sets up. 
It would be helpful if the owner could share his/her insurance details with you.
What you might need to take out separately is something to cover you if the horse should die or become permanently unsound while in your care and the owner tries to sue you for damages claiming that the incident was down to your negligence.


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## k9kenai (Jul 1, 2017)

When I did a lease-to-buy on my gelding both the owner and I agreed to pay half and half on the mortality/colic insurance while he was under lease until I had paid for him in full. Generally it is a per year cost, and it is not extremely expensive and depending on the company is usually based on the value of the horse and the activities you are planning on doing with it. So unless you have an insanely expensive horse and/or are planning on doing what is considered "more dangerous" (in the eyes of the insurance company) activities such as racing, eventing, etc. then you probably won't be paying much. Also, certain insurance companies have discounts if the horse is registered, or if the owner is a member of a breed organization such as AQHA, etc.

I would definitely talk to the owner to clear things up before signing anything and make sure you get the insurance coverage before you take over care of the horse so that everything is clear and in writing so there is no confusion later on should something happen with the horse. I also agree with what someone posted above that there should be an exclusion should anything occur that is related to his previous injury as I feel any expenses related to that should fall on the previous owner unless it was due to gross neglect on your part.


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## Dreamcatcher Arabians (Nov 14, 2010)

I use Jarvis Insurance and we've done it 2 ways. The lessee insures the horse for full value, mortality & loss of use, and carries a medical policy that covers injuries and sicknesses. I am designated as the loss payee in the event of death or loss of use, either the lessee is reimbursed for vet costs or the vet is paid direct (however the vet & insurance co agree). As far as an old injury, if he's declared sound as of today and healed, unless it's a recurrent injury due to repetitive use, then he's healthy & sound and even if he got re-injured it would come under the insurance policy.


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## beau159 (Oct 4, 2010)

Dreamcatcher Arabians said:


> As far as an old injury, if he's declared sound as of today and healed, unless it's a recurrent injury due to repetitive use, then he's healthy & sound and even if he got re-injured it would come under the insurance policy.


OP if you do end up doing insurance, be warned that sometimes previous injuries or issues are pre-existing conditions and might NOT be covered.


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