For recruitment firms and driving agencies, drivers negligence insurance is often a standard contractual requirement where you supply HGV or Van Drivers to your clients. Unlike many traditional insurance providers, Insync’s recruitment insurance schemes offer affordable drivers negligence insurance which is tailored to the needs of your agency.
Insync is a specialist insurance broker for the recruitment and staff agency sector, our team of expert advisors will tailor a bespoke recruitment insurance package which includes professional indemnity, public and employers liability together with your drivers' negligence protection. Our menu-driven approach means that you only pay for the elements of cover you need including:
Professional Indemnity Insurance
Public Liability Insurance
Fidelity Bonding (theft of goods in the vehicle driven by agency driver)
Office Contents, Computers and Portable Business Equipment (laptops and mobiles)
Business Interruption / Loss of Income
Management Liability (Directors and Officers)
Personal Accident Cover
Drivers Negligence Insurance is an extension to the Public Liability Insurance or Professional Liability section of a drivers agency recruitment insurance policy. It provides accidental damage cover to the hirer's vehicle(s) being driven by the agency driver(s) under the supply agreement from your recruitment firm. Should the agency driver damage the hiring firms vehicle, for example hitting a bollard or scraping the paintwork, the driver could be held negligent under the supplier agreement and the recruitment firm would need to claim under their drivers' negligence policy.
Cover under the negligence extension is for accidental damage cover to a vehicle being driven by the agency driver you have supplied on a per claim basis, typically up to a maximum sum insured of £25,000 per incident, with an annual aggregate limit for all policies incurred under the drivers neg extension. The aggregate annual limit is set by insurers at the start of the policy based on your requirements and experience. Limits per claim or incident start from £5,000, with most Driving Agencies requiring cover for £10,000 contractually. Annual aggregate limits set up insurers are typically between £50,000 and £100,000 per annum.
If you supply temporary drivers to your clients, be it LGV drivers or HGC drivers, you are likely to be asked to provide a copy of your Drivers Negligence policy before the firm will enter into a contract with you. With the growth in the gig economy, many fleet owners or delivery firms are using more and more agency supplied drivers to supplement where they have increased demand, or to cover for a period of holiday and sickness.
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The cost of your drivers' negligence policy will depend on a variety of underwriting factors which the insurer will consider, with the core elements being:
Limit of Drivers Negligence Indemnity Required: £5,000, £10,000, £15,000 or £25,000
Policy Excess Level (the first part of each claim you are responsible for): £500 or £750
Number of Drivers supplied and/or on the road at any one time
Nature of contracts undertaken and the type of vehicles typically driven by your supply drivers: HGV, LGV or Passenger Cars
Claims Experience of your agency (if you have previously purchased drivers neg. cover)
Age and experience of Temporary Drivers recruitment
Drivers conviction history and length of licence held in the UK
Please complete the quotation form and one of our team will help you find the most appropriate policy for your needs.
According to the Recruitment and Employment Confederation (REC) industry trends report £33.4 billion of revenue was generated through temporary or contract placements in 2018/19, which is 86% of total recruitment industry revenue, with Agency Drivers making up an ever-growing percentage of this revenue.
Diversifying your recruiting business into supplying temporary drivers can expand your business and reduce the risk of a business slowdown in other industries.
When a firm employs the services of an agency or temporary driver they will cover them legally to drive their vehicle as required under the compulsory insurance requirements of the Road Traffic Act 1988. However, should the agency driver cause accidental damage to the vehicle through negligent driving, for example scraping the vehicle on a wall whilst parking, the hiring firm may not want to claim their commercial vehicle or fleet insurance as it would impact their no claims discount and/or fleet claims experience. This is why it is now commonplace for hiring firms to insist on drivers negligence cover for temporary agency drivers as part of their contract.
Should the driver be involved in a more serious accident including injury or damage to a third party then the firm would still need their fleet policy to respond in the normal manner.
The most effective way to manage the cost of your drivers' negligence policy is to manage your risk by ensuring all the drivers you provide are experienced for the role they will perform and their driving is of a high standard. It sounds obvious, but reducing your number of claims is the best way to reduce long-term insurance cost and this requires sensible risk management protocols.
Some risk management will flow naturally from your clients (the hirer) own fleet management procedures and this will dictate how you formulate the job role specification and pre-hire engagement with the driver. Typically, this will include protocols such as the number of breaks, mobile phone policy, night-time vs. daylight driving, driving experience and any age restrictions.
Many driving agencies choose to only employee drivers aged over 25, although it is possible to obtain drivers negligence cover for drivers aged 21 and over. All drivers will normally require a Full UK (or EU equivalent) driving licence for a least 24 months.
Drivers with two or more accidents and/or claims in the last three years also need to be referred to the insurer. Similarly, those with over nine penalty points for minor driving convictions during the last three years also require referral.
Acceptable minor convictions include speeding (SP) or parking offences or CU10, CU20, CU30, CU40,
CU50, CU80, MS10, MS20, MS30, MS40, MS50, MS60, MS70, MS80, MW10, PC10, PC20, PC30,
PL10, PL20, PL30, PL40, PL50, TS10, TS20, TS30, TS40, TS50, TS60, TS70.
Unfortunately, drivers negligence only covers road vehicles and is designed for HGVs, LGVs and Passenger cars, cover for forklift trucks and other plant is specifically excluded.
Whist all recruitment insurance policies are arranged on an annual basis, our scheme insurer generally allows payment over 12 months to help to spread the cost of your cover.
Insync Insurance Solutions Ltd
9 Albany Park, Cabot Lane
Poole, Dorset BH17 7BX
t. 01200 309516
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