Protecting The Supply Chain: Drivers Negligence Cover for Recruitment and Umbrella Companies

For recruitment agencies and umbrella companies supplying temporary drivers, the risk of vehicle damage by a temporary worker is a critical consideration. While your clients may have their own motor fleet insurance, incidents caused by a temporary driver can expose your business to significant financial liability. Drivers Negligence Insurance is a specialised solution that protects your company by bridging the gap between an incident and your client’s primary policy. It is not a substitute for standard vehicle insurance but a vital complement, designed to cover repair costs that fall below a client's policy excess or to cover that excess itself in the event of a larger claim.

How This Cover Works for Your Business

Imagine a temporary driver supplied by your company causes a minor scrape to a client's trailer while on assignment. The repair cost of £2,500 is less than the client's £5,000 policy excess. In this situation, the client would typically not claim on their main policy and might look to your company to cover the cost. With the right insurance policy in place, your business can claim this expense, preventing it from impacting your bottom line.

In a more serious scenario, consider a temporary driver involved in an accident that writes off a client's Heavy Goods Vehicle (HGV). The client's insurer settles the full £30,000 claim, but your client is liable for their £10,000 policy excess (subject to your excess, typically £500 at a minimum). This cost could be passed on to your company. A well-structured policy would cover this, protecting your business from a significant financial hit and strengthening your relationship with the client.

Key Factors When Choosing Your Policy

To ensure your policy provides comprehensive protection and supports your business model, consider these crucial elements:

• Financial Limits: Policies will have a "limit of any one claim" (e.g., £10,000) and a total aggregate limit for the policy period (e.g., £50,000). Selecting limits that reflect the scale of your operations and the value of your clients' vehicles is essential.

• Excess Structure: Be mindful of the policy's excess. Some policies may have a tiered excess based on a driver’s experience, while others may have a fixed amount. A lower excess can make your business more competitive by reducing a client’s potential exposure.

• Basis of Cover: The most suitable policy for a recruitment or umbrella company is generally on a 'claims occurring' basis. This covers incidents based on when they happened, providing security even if a claim is reported some time after the event, which is common with temporary placements. A 'claims made' policy, by contrast, only covers claims reported while the policy is active and can leave you exposed once a placement ends.

• Policy Exclusions: Always review the fine print for exclusions. Common areas to check include damage resulting from driver convictions, deliberate acts, use of incorrect fuel, or general wear and tear. Ensuring there are no unexpected gaps in your cover is paramount.

By strategically securing a drivers negligence policy, your recruitment or umbrella company can mitigate financial risk, enhance its professional reputation, and provide a more secure and attractive service to both clients and temporary drivers.

Please reach out to the team here, if any of these covers are required. We will then personally introduce you to third-party specialists, who will be able to arrange this accordingly for you.

PLEASE NOTE: Intro Hero ONLY make introductions as an introduction agency. We are not regulated by the FCA and any content on our website, is for illustrative purposes only. Any insurance advice, must be provided by an FCA approved insurance broker.