Drivers Negligence Insurance
This specialist insurance is crucial for recruitment and staffing agencies that supply drivers, especially HGV and van drivers. It's often a mandatory requirement in contracts with clients.
Essentially, it's an extension to the Public Liability insurance that covers accidental damage to a client's vehicle, caused by a driver supplied by the agency.
This product offering is niche to a recruitment insurance policy or an umbrella/payroll company insurance policy and as such, is only available via certain markets.
It specifically addresses situations where a driver's negligence results in damage to the vehicle they are operating.
Coverage is provided on a "per claim" basis, typically with a maximum payout per incident (e.g. £5,000, £10,000, or £25,000).
There's also an annual limit (referred to as an aggregate) on the total amount the policy will pay out for all claims during the year, generally speaking this is usually either £30,000 or £50,000.
There are certain conditions, that your drivers will need to adhere to such as driving experience, age, type of vehicle that is covered and certain conviction codes are not allowed.
Inappropriate activities are not covered, such as racing, pace-making or speed testing.
Policy wordings will vary from insurer to insurer so it is important that you note the conditions noted on your policy and respective exclusions. If in doubt, speak to a specialist broker.
The price of this insurance varies based on several factors, including:
- The level of indemnity required.
- The policy's excess (the amount the agency pays before the insurance kicks in).
- The number of drivers supplied or payroll estimates.
- The types of contracts the agency handles.
- The agency's claims history.
- The age, experience, and driving record of the temporary drivers.
In summary: Drivers Negligence Insurance provides vital financial protection for recruitment agencies against the risks associated with supplying drivers to clients. The cover is a requirement of third-parties, which protects their motor fleet insurance.
You must seek insurance and/or advice from an FCA regulated entity. Intro Hero only note the covers and/or products available and make introductions accordingly to suitably qualified and/or regulated entities. The contents of this website are for illustrative purposes only.
Protect your recruitment agency with comprehensive Drivers Negligence Insurance. Our partners are experts in this field and are ready to help you find the right coverage for your needs.