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Ok I do not think it is a legal requirement for the drivers to carry such liabilty insurance, it is up to them as individuals to decide how much insurance to have in place.
It may be that client's have dictated that they are not prepared to take drivers without this level of cover and it could be that your agency decides that it is not prepared to take drivers without this.
However there is no legal requirement for drivers to have this, so I would sugget that your financial director ask his solicitor whether this is a law or simply his advise of a sensible level of cover. I suspect it is the latter.
Well if your policy does not provide the cover to limited companies but the client insists that they have it , this means that it is the client's requirement rather than a legal one. You are therefore under commercial pressure to insist that they have such cover.
If you were to send them to clients who insist on this level of cover then you would be in breach of contract if you did. You could be sued for damages resulting from this breach and also you would be likely to lose future business if you were to supply drivers without this level of cover.
You need to check your own insurance to see if your insurance covers self employed drivers - it may or may not do.
Other than this there is no legal requirement that this cover be in place.
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