We are often asked about insurance requirements of running an EFL Practise. There is not clear answer we can give as everyone is working in a slightly different way. We of course can recognise several risks involved in running an EFL Practice but the variant of how practitioners work; some work from home, other from a livery yard/riding school, some are employed or working out of a field, make it impossible for LEAP to provide a definitive answer. We have outlined below the different types of insurance available and advise you speak to an insurance specialist about your individual situation and business set up to get a bespoke quote for you.
- Professional Liability Insurance
While there is no legal requirement for you to have professional liability insurance, there are two compelling reasons. Firstly, LEAP and other professional organisations, for example ACCPH require you to demonstrate that you have such insurance if you are to become or remain one of their members. Most credible supervisors would require you to have such insurance before agreeing to supervise your work. Most referring organisations would require you demonstrate that you have such insurance before offering you work.
Secondly, the cost of not having might lead into bankruptcy or severe financial hardship. The cost of mounting a legal defence if sued, then paying financial compensation if you lost the case, could easily run into hundreds of thousands of pounds. While this rarely happens, there is a risk it might. Even if allegations of inadequate or harmful service are proved to be unfounded, defence costs are still likely to be significant.
- Public Liability Insurance
Or third-party cover, this covers you against bodily injury to a third party or damage to a third parties property as a direct result of your negligence. The cover is normally offered with choices on the limit of indemnity usually £1/2 or 5 million.
- Employers Liability Insurance
This provides cover for any bodily injury, sickness or disease sustained by your employees because of the business’s negligence. Employers’ liability is a requirement under the Employers Liability Act 1969 and should be in place for anyone working on your behalf whether full time, part time, voluntarily or in training. It is often a requirement to also take out public liability cover.
- Custodial Liability Insurance
This provides cover against the death and/accidental injury to horses/ponies that are in your care, custody or control in respect to a claim that is made against you by the owner. This is typically liveries, but you may use other people’s horses as part of your EFL Practise. A benefit will be paid for veterinary fees and/or the current market value, up to the limit of indemnity in the event of an accident, disease or mortality of the horse.
This provides cover for death, theft and straying, legal liability, vet fee cover, personal accident, saddlery and tack depending on your individual policy. Policies often cover your horse being used for leisure activities so you may need to advise your provider of a change of use and speak to an insurance specialist to understand the best cover for you.
All insurers require that you comply with current Health & Safety Guidelines as well as ensuring that you have appropriate risk assessments in place. While LEAP cannot provide any risk management advise, it may be useful to look as the following sites which can act as reference points and contain information on risk assessments along with good practice advice for general equestrian businesses: