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Jenny Mackenzie
Jenny Mackenzie,
Category: UK Law
Satisfied Customers: 6307
Experience:  Over 10 years experience in general legal matters
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As a HGV Recruitment Agency that uses LTD Company HGV drivers

Customer Question

As a HGV Recruitment Agency that uses LTD Company HGV drivers 'ie a sole hgv driver registed as a Ltd Compay, I am now been informed that if we to continue to use them we now have to insist that they now have:
Employers Liability £10,000,000
Public Liability £10,000,000
Professional indemnity £2,000,000
Is this the case as I have spoken to other Recruitment Agencies and they have not heard of this?
Submitted: 6 years ago.
Category: UK Law
Expert:  Jenny Mackenzie replied 6 years ago.
Hello and welcome to Just Answer, who has informed you of this?
Customer: replied 6 years ago.
The Finance Director of the company has been advised of this from a Solicitor but he has not been told as to why.

Several Managers who can not understand why this has happened have contacted Larger recruitment agencies to see if they have changed thier policy regarding working LTD Company HGV Drivers and they are unaware of this, additionally I contacted Smart Business Soluctions to find out how much this policy would cost and they also said that this policy was not needed so I said I would try and find out myself!
Expert:  Jenny Mackenzie replied 6 years ago.

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.


Customer: replied 6 years ago.
I thought this but when I mentioned it to one of the other bigger Recruitment Agencies that uses a client that I know insist on Employers Liability £10,000,000, they said that there own insurance policy covers this, when I mentioned this to our Head Office they replied that they belive this not to be true as our policy only covers paye drivers and not ltd companies; additionally when I mentioned this to the Insurance broker he also thought that the ltd company drivers would be covered under our own policy if they were the only employee?

Expert:  Jenny Mackenzie replied 6 years ago.

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.


Customer: replied 6 years ago.
Sorry to be a pain, but to clarify we do not have to insist that they match our polices as it is not a legal requirement. and if our own policy covers them we would be ok, however if not we can not send the ltd drivers to the clients that insist on this amount of cover?
Expert:  Jenny Mackenzie replied 6 years ago.

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.


Please press ACCEPT now as I am not otherwise credited for answering your question. I will then leave the question open to answer your follow on questions.

Jenny Mackenzie and other UK Law Specialists are ready to help you
Customer: replied 6 years ago.
I am sorry I did not press the button, thank you for all your help in this matter.