Drivers’ negligence insurance provides cover for accidental damage caused by drivers who are hired via agencies.
If a company uses a driver provided by an agency, because the driver in question is not an employee of the company, it will not want to claim under its own insurance policy. This is because its claims history would be affected simply by making a claim, when the damage was in fact not caused by one of its own staff.
Agency drivers can also be more likely to have accidents, as they are often recruited at short notice without full training being provided, and may be unfamiliar with the vehicle and/or the route.
Drivers’ negligence insurance seeks to provide a solution to this dilemma. Agencies that supply drivers therefore usually purchase this insurance in conjunction with their Public and Employers’ Liability Insurance. It is not usually possible to purchase drivers’ negligence insurance as a standalone policy.
Once this insurance is in place, the hiring client can claim for minor accidental damage costs caused by the actions of an agency driver.
Examples of when a claim might need to be made include:
- Damage caused by doors being opened
- Damage caused by reversing into bollards and other obstacles
- Damage caused when vehicles skim low bridges or other height restrictions
Each claim under this type of policy is normally restricted to £10,000, although it is possible to find policies providing up to £15,000 of cover. The policy will also have an Any One Period Limit – the maximum amount that can be claimed in total during the period covered by the insurance – and this is usually between £50,000 and £100,000 per year. The typical excess on this type of insurance is between £500 and £1,000 per claim.
Most policies only cover accidents in the UK, however some plans cover the whole of Europe, and others provide insurance against accidental damage that occurs anywhere in the world.
Drivers’ negligence insurance cannot cover third party property damage or bodily injury, as these events can only be covered via a motor insurance policy.
Self-employed drivers may also find it difficult to purchase drivers’ negligence insurance as individuals – again provision of this cover is a matter for the agency that engages them.
