The increasing prevalence of agencies entering non-standard terms with hirers makes this an important consideration. These non-standard terms can irrespective of the actual employment status of the person or persons being supplied lead to you being held vicariously liable for any losses arising out of their actions when on placement.

It is important that any non-standard terms are reviewed alongside your insurance policy to ensure that any increased risk is adequately covered.

We understand the increasingly competitive nature of your marketplace, business involves taking risks, we work with you to mitigate the potential impact of those risks.

The terms you enter with your hirers may be your own standard terms, they may be the clients’ own standard terms, or they may bespoke and specific to any given contract. Insurers typically differentiate your contracts into two categories for the purpose of assessing the risk –

Standard Terms of Business means terms of business which contain an agreement that any person or entity you supply shall be under the direction, supervision, and control of your end client so far as concerns responsibility for legal liability incurred.

1. to such persons or entity and:
2. to any other party because of the acts or omissions of such persons or entity

Non-Standard Terms of Business typically means that the terms will include a liability clause that will require your insurers to provide cover in respect of any injury, damage or errors and omissions made or caused by the persons or entity you are supplying.

You should be mindful that as the scope of services businesses in the recruitment chain has broadened so have the types of contracts that underpin contractual relationships evolved. You may for example enter into Managed Service Agreements that include a Statement of Work document. These agreements can create specific insurance needs that need to be reviewed and assessed carefully. If in doubt speak to your insurance partner.

Agencies and Umbrella Companies that supply drivers are increasingly being asked by their clients to purchase this cover. It is necessary when the terms make you liable under the contract for specific damage caused by the negligent acts of the drivers you have supplied.

Driver Negligence Insurance is intended to cover vehicle claim costs.

Drivers Negligence Insurance is not a standalone policy, it is an extension to Public Liability Insurance, which provides cover for damage to the hirers vehicles. The intent is essentially to negate the need for your clients to claim on their own motor insurance policies for what are usually minor claims.

It does not cover third party injury or damage to their vehicles or property due to road traffic accidents. This must be covered under a separate motor policy in accordance with the law.

You only need to purchase Drivers Negligence Insurance where you have entered into an agreement where you have accepted that responsibility. Not every driver you supply will necessarily need to be covered as cover is only applicable where it is a requirement of the contract.

Drivers Negligence Insurance is not provided by all insurance companies. Where it is available the cover may have specific conditions in respect of the age, experience and any prior convictions incurred by drivers. An excess will be applicable to claims made under the cover. The policy will ordinarily have two limits –

Any one claim – usually either £5000 or £10,000

Any one period – usually either £30,000 or £50,000

Your business will have its own unique challenges. Our specialists have the experience and insight to support your business insurance needs.

Claims never come at the right time, but our dedicated claims advisers are here to support you through the entire process. Contact us right away to start your claims process.