Drivers Negligence Insurance provides cover against claims in respect of accidental damage caused to a hiring clients vehicle being driven by an agency supplied driver.
Minor Accidental Damage
This coverage is usually a stipulation imposed on a driving agency by a hiring client. The intention is to enable the hiring client to reclaim minor accidental damage repair costs caused by an agency driver. This would be as opposed to a claim under their own motor fleet insurance policy which would affect their own claims experience. Common claim scenarios include doors being opened onto bollards, vehicles being reversed into objects, and vehicles clipping height restrictions. Each accidental damage claim is normally limited to £10,000. Claims for third party property damage or bodily injury are excluded under Drivers Negligence Insurance as all road traffic accidents must be insured by a motor insurance policy in-line with the Road Traffic Acts.
Not in Isolation
At present, Drivers Negligence Insurance cannot be purchased in isolation. It is usually bought in conjunction with Public and Employers’ Liability Insurance coverage. Cover is rated on the number of drivers supplied at any one time.
For driving agencies using self-employed drivers, putting the onus on the self-employed driver to carry their own Drivers Negligence Insurance is currently not a option. At present I am unaware of an insurance market that offers cover for individual self-employed drivers.
Contract for Services
Ultimately the hiring client’s contract is usually with the driving agency. Under the terms of that contract the agency would usually be obligated in law to pay the Drivers Negligence claim to the hiring client.
Depending on the contract between the self employed driver, the driving agency and the hiring client, if the self-employed driver has a ‘contract for services’ with the driving agency then insurers are usually happy to include the self-employed driver under the driving agency’s Drivers Negligence Insurance.
Important Information to consider:
Assuming that your drivers will be paid by you and placed under the direction, supervision and control of the hiring client, we would advise a package to include Employers Liability (office staff), Drivers Negligence, Legal Expenses, Public Liability and Professional Indemnity, to cover any oversight in checking references properly that may result in a claim etc.
In order to provide you with a quote we would need to know your estimated annual turnover, annual payroll for temp and perm staff respectively and the maximum number of drivers out on the road at any one time.
As an indication, for a new agency with 5 drivers out at any one time, annual insurance premiums would be in the region of £3,500. The lions share of that premium would be due to the Drivers Negligence element. We are unable to provide Drivers Negligence in isolation.
For help and advice about Drivers Negligence Insurance contact Suzanne Fowler directly on 0118 916 5489.