Employer's LIABILITY INSURANCE 

Liability insurance is designed to provide cover for an individual or business should they be held legally liable and a claim made against them. It could be, for example, in relation to negligence, injury or property damage. Having an appropriate liability policy in place will mean that:

• The insurer will act on your behalf in the handling and assessing of the claim against you 
• Any correspondence that you receive from the claimant or their representatives can be passed on to the insurer, who will respond on your behalf.
• You won’t incur any legal costs unless you choose not to use the insurer or their representatives to deal with the settlement.
• Any settlement will be paid by the insurer (up to your limit of indemnity and after any excess due)

There are different ‘types’ of liability insurance so it is important to understand your business’ requirements in order to ensure you have the correct coverage.

Employers’ Liability covers you for a personal injury claims made against you by an employee during the course of their employment. You are required by law, under the Employers’ Liability (Compulsory Insurance) Act 1969, to hold a current Employers’ Liability policy for anyone you employ, whether full or part time.

Public Liability Insurance covers you for claims made against you in respect of third party property damage or third party injury. The cover available through KBIS offers a choice to the limit of indemnity of either £1,000,000, £2,000,000 or £5,000,000. All limits carry an excess of £500 for third party property damage only.

Also referred to as Care, Custody and Control, this insurance provides cover should a horse not owned by you but in your care, sustain an injury or die as a result of your negligence. Benefits are usually paid for veterinary fees or, in the event of the horse’s death, the current market value of the horse, up to the incident limit.

Depending on the circumstances it may also include reimbursement for other costs, such as loss of entry fees. You can choose to add Custodial Liability to the policy with a choice of limits from £10,000, £25,000 or £50,000, with a total limit of £100,000 during the policy period. The excess is £500 for each and every loss.

Even with just one member of staff, if they are employed by you then you are required by law to have Employers’ Liability Insurance. Employers’ Liability cannot be purchased in isolation, only in conjunction with Public Liability cover.

Do I need any insurance?

If they are self employed/freelance then you shouldn’t fall under the requirements for Employers’ Liability insurance but you need to obtain appropriate advice. This might entail speaking to a solicitor or a free legal advise bureau. Alternatively the following online resources might help you make a suitably informed decision:
• Government website - www.gov.uk/employers-liability-insurance
•Health and Safety Executive website – www.hse.gov.uk

Just because you are a private yard doesn’t mean that you aren’t subject to the same requirements as a business. Whilst there is no legal requirement for Public Liability insurance it would be appropriate to consider having this cover in place.

A Public Liability claim could arise out of something as simple as a horse escaping through unsuitable fencing resulting in damage to a third party’s property. .

Public Liability insurance only covers injuries caused to a third party, if you yourself had an accident on the yard your Public Liability policy would not provide cover.

If you are concerned about the financial implication of having an accident yourself then consider having your own Personal Accident insurance policy. A comprehensive stand-alone personal accident policy will not only offer lump sum benefits for a significant injury or illness but will also provide weekly benefits, linked to income, which aims to supplement your earnings if you are unable to work.

KBIS also offer EEA members a discount on their Personal Accident Insurance. To find out more about this policy or to request a quotation click here

I do have a freelancer who helps me sometimes twice a week and I have 4 liveries too?

It would be advisable to have a liability policy in place for your livery yard. The first cover aspect of this would be Public Liability insurance but you might also want to consider adding to this Care, Custody and Control Insurance (explanations of the cover provided by these can be found above).

The policy offered through KBIS is a combined liability policy so offers the flexibility to adjust cover to suit your business requirements as well as a choice in the limit of indemnity. You can also amend cover during the policy period to cater for any changes in your business activities. For example whilst you don’t currently employ a groom if this changes in the future you could include Employers Liability insurance on to the policy.

It would be worth checking if your freelance groom has their own Public Liability policy in place for their business activities. The BGA offers its members access to a specialist Groom Liability policy so it might be worth suggesting they visit their website, if they aren’t already a member, to find out more.