Drivers Negligence Insurance, what is it and do I need it?
Drivers Negligence Insurance is an extension that provides cover against claims made in respect
of accidental damage to a hiring clients vehicle as a result of an agency supplied
driver's (a temporary worker's) negligence, who may be supplied by a driving agency, recruitment company, or
umbrella company.
Why would I need Drivers Negligence Insurance?
This cover is normally something that is insisted upon by end clients,
which you may have come across when working with the likes of Argos,
Wincanton, or DHL. It enables the end client to reclaim repair costs for
any damages caused to their vehicle caused by the negligence of the
temporary worker provided by you up to the limit as stated in the
schedule - whether this be £5,000, £10,000 or up to £25,000 in any
one claim (and subject to the applicable excess). This cover protects
the end hirers motor fleet policy from picking up unnecessary costs
through no fault of their own, as your insurance policy would pick up
the claim wherever appropriate. This type of insurance, is uniquely referred to
as driving agency insurance or drivers negligence insurance and only appropriate, to
the staffing sector.
Its also worth noting that this aspect of cover only extends to
cover damage caused to the vehicle provided by the end hirer as a
result of an accident when being driven by a temporary worker.
It does not extend to covering claims for third party vehicles,
property or bodily injury; these constitute Road Traffic Accidents
and must be insured for appropriately to comply with the Road Traffic
Act which would usually sit as part of the end hirers Motor Fleet policy itself.
What are some examples of where Drivers Negligence Insurance may respond?
Very typical examples of where Drivers Negligence Insurance may come into play, could be:
1. A driver reverses into a bollard causing damage to the trailer / tail-lift;
2. A driver misgauges or doesn’t read the height restrictions on a bridge and subsequently
gets themselves stuck causing damage to the roof of the vehicle;
3. A driver shunts a vehicle in front of them as they misgauged the stopping distance.
The list goes on…
But I'm a self-employed driver?
As guidance if, for example, you are a self-employed driver
and you have been asked to provide the cover, you may realise that this isn’t available to you.
The wordings provided for this insurance are quite specific in the fact that it needs to be a temporary
worker provided by a Recruitment or equivalent company placed under a contract for service to fulfil an assignment with an end hirer.
We've been insuring Recruitment Companies, Driving Agencies, Umbrella and Payroll Companies for a long time...
We have personally been insuring this sector for 12+ years and have access to all of the leading
insurance markets specific to Driving Agencies, Recruitment Agencies, Employment Agencies, Umbrella Companies and Payroll Companies.
Get in touch to get a quote, learn more, or to have any questions about cover answered – we’re always happy to help.
We look forward to speaking with you soon.
