I am free leasing my horse out, and was wondering who generally pays for the insurance? Owner or leasee? I always thought the leasee should pay for it since the horse is in their care, but lately people have been mentioning otherwise.
With a regular lease, it is usually built into the lease fee. For example, I leased my horse out for $10,000/year. $1,300 of that goes to the insurance policy. Leasee has personal liability only.
Also, it depends if the horse is covered for mortality, or just liability. I think every rider (leaser) should have liability and the owner be responsible for medical/surgical/mortality as they will be the ones to collect the funds should something happen.
I always hold the insurance because you can't ever trust that the lee sees will keep it up. I build that into my cost of lease. If a free lease I will usually ask them to pay all costs related to the horse and this is one of them.
If it's a free lease at 100% and the horse is going to be off the property, then I would expect the leasee to pay insurance.
The only time I wouldn't want to pay insurance personally is if it were a free lease on the property while being in training. I had a number of lease options I was considering years ago when I didn't have a horse. One owner insisted that if I were 1/2 leasing that she wanted me to pay half the insurance. I turned it down because I was in 1/2 training with the same trainer and essentially only riding when I was in a lesson, except for occasional trail rides around the property. Some people might have felt I should pay for the insurance, except there were plenty of nice options where owners did not require me to do so. I moved on and leased something else that was just as nice, but more affordable.
my lessees' pay for insurance, seeing as they're the ones using the horse. insurance would be paid to me though.
That is correct, but more clear:
Lessor chooses and buys the policy, to be reimbursed before the horse goes to the lessee.
Lessor is named as the payee.
The Lessor/HO does the insurance shopping and buying so as to protect her investment-- a policy that will do the job.
IMO, an agreement that includes insurance ought to include a clause that obligates the lessee to follow the insurance company's instructions to the letter. After all, the policy don't mean diddly if the people actually caring for the horse do something that invalidates a claim (like treating the horse before calling the insurance company).