Recruitment and Employment Agencies/Businesses supplying drivers are required to extend their public liability insurance to include drivers negligence.
Often the comment is made that there is no point in having this expensive extension to their Public Liability Insurance schedule as no claims are ever paid.
Unfortunately statistics from all the insurance underwriters providing this cover show that this is not the case. Claims made have been increasing now for several years, and agencies are having to pay for incidents which fall under the policy excess in addition to keep their clients happy.
What is the extent of the cover? Below are a few details of a typical drivers negligence extension.
Accidental loss of or damage to any motor vehicle the property of, or hired or lent to,
a customer or client of the INSURED and caused by the negligent act of any SUPPLIED PERSON driving such motor vehicle occurring anywhere within the GEOGRAPHICAL LIMITS during the period of insurance.
The limit paid under this policy is set out in the policy schedule and is normally between £5000 and £25,000 any one claim.Wear and tear is not covered, but the cost of
reasonable recovery following an accident usually is.
Policies are getting more flexible, drivers 21 and over with limited experience are now accepted but those with convictions have much more of a problem to obtain cover.