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Drivers Negligence Insurance

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    Drivers Negligence Insurance

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    Drivers Negligence Insurance cover has never been more important!

    Due to the current national shortage of lorry drivers, recruitment agencies are doing everything they can to fill the gap to recruit more lorry drivers for the nation. However, with the possible increase in claims from agency recruited drivers, we could see an increase in insurance prices. Another cost that recruiters don’t want to worry about!

    Since leaving the EU, the UK changed their immigration laws. Stating that both EU and non-EU citizens, who want to come to the UK to work, need a working visa.  Furthermore, as lorry drivers were not classed as essential workers, numerous could not receive a ‘skilled worker visa’, resulting in many leaving the UK. However, the government recently recognised this was a significant problem and introduced a temporary visa scheme to help with the shortage, which will be extended into early 2022. But what will this be enough to fix the shortage?

    The government have also introduced a fast-track HGV testing method to try and help with the shortage. But this has caused concerns within the driving sector, claiming that the scheme is political rather than practical. In addition, the fast-track tests could pose a significant health and safety risk, leading to an increase in accidents and insurance claims. So ensuring that your drivers and you are covered is essential; therefore, Drivers Negligence has never been more important.

    What is Drivers Negligence Insurance?

    Drivers negligence insurance is an additional policy to a recruitment agency’s public Liability Insurance or Professional Liability section for a driver whom a recruitment agency hires. For a recruitment agency to claim valid DNI, drivers, in general, must be 21 or over and hold a full UK driving licence. Typically, Drivers Negligence Insurance covers only UK driving; though, some insurance providers expand to the EU. In addition, most insurance providers offer cover for any road licenced vehicle. However, you may find some only offer cover to HGVs, so it is vital to research the insurance company your agency will be using.

    Who does it cover?

    The insurance covers accidental damage to a client’s vehicle caused by a driver who is at fault and supplied by a recruitment agency. However, if the fault is not with the recruitment agency driver, no DNI claim will be taken out but left with the other driver’s insurance policy. Meaning, there should be no claim on the agencies Drivers Negligence Insurance from this incident. In addition, third-party injury, property damage and any destruction caused to the vehicle during a road traffic accident is not covered within the insurance policy. But again, you may find a Drivers Negligence Insurance company that provides you cover for incidences such as these.

    Why is DNI important?

    It is a legal requirement for recruitment agencies to provide insurance for drivers they have hired. Having cover on all hired drivers ensures financial support for recruitment agencies if an accident occurs.

    The insurance policy could cover the cost of 1 claim, typically ranging from £500 – £25,000 (depending upon the excess put in place). There is also a claim limit per annum, and this annual limit can range from £50,000 – £100,000, depending upon the agencies experience and requirements.

    Positives of Drivers Negligence insurance

    If an accident occurs, rather than claiming under the driver’s personal insurance and risking their no claims bonus, the claim would come out of the Drivers Negligence insurance. This is a great benefit that agencies can offer their workers in a very competitive market.

    The answer is Simplicity

    Sold in conjunction with your public and employer’ liability cover, additional drivers negligence insurance could set you back a further £5,000 on average per year. Depending on the number of drivers you require cover for and the posing threats of DNI prices further increasing, you could start to experience a strain on your profit margins very soon.

    One of the many benefits we offer here at Simplicity is FREE insurance cover as part of our principle finance model. This includes public and employer liability and drivers’ negligence insurance cover for all drivers you recruit.

    For more information, please get in touch with a member of the team on 01594 888518 or email sales@simplicityinbusiness.com

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