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.
This coverage is usually a stipulation imposed on a driving agency by a hiring client, with the intention to enable the hiring client to reclaim minor accidental damage repair costs caused by an agency driver, rather than claim under their own motor fleet insurance policy which would affect their own claims experience. Common claim scenarios include, doors being opened onto or vehicles being reversed into bollards, 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.
At present, Drivers Negligence Insurance cannot be purchased in isolation and 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 and minimum premium packages start from c£2,500 for up to 10 drivers.
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, as at present I am unaware of an insurance market that offers cover for individual self-employed drivers.
At the end of the day, the hiring clients contract is usually with the driving agency and 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.
For help and advice about Drivers Negligence Insurance contact Suzanne Fowler on 0118 916 5489.
*Information correct as of 1st February 2018