Risks of using a named driver

Mr_Renovator_2

Hi everyone,

I am a sole trader and have to undergo surgery shortly. I want to employ someone p/t to operate my business whilst I am recuperating. They will use my van and I assume that I can place them on my policy as a named driver.

I would like to find out what the implications would be if this named driver broke the law whilst driving my van and had an accident in which someone was injured, invalidating the insurance. Say, they had been drinking, or speeding, or using a mobile whilst driving.

Would the named driver be wholly responsible, or could it be mine. If the insurance was deemed invalid due to the named drivers actions, could the third party sue me personally for damages.

All help and advice welcome.

Thanks

Paul

N9eav

The insurance company should always pay out 3rd party claims, although they may not pay your losses if the driver was committing offences.

The driver will always be responsible for his actions, traffic offences etc

You as the registered keeper are still responsible to make sure your van is legal. You will be responsible if the van has for example bad tyres or defects under 'Permitting' the vehicle to be used in such a condition. The driver is also liable for not checking and reporting such defects and using the van is such a state

Same goes for allowing someone to drive yuour van if you have no tax, MOT etc...

For the most part as long as you don't employ a Nob you should be fine

InsideInsurance

You would need to read your policy documents to be sure but generally.....

Insurance is void for whatever reason and a ND has a fault accident. The ND is legally liable for the debt to the Third Party. If the ND cannot pay the debt then the TP can force your insurer to act as the RTA Insurer for the vehicle and settle the debt to the TP. Under most circumstances the insurer is then legally entitled to reclaim that money from either the ND as the party that caused the loss or the Policyholder as there is normally an indemnity clause in your policy.

Some insurers will try and reduce the costs by admitting they are the RTA Insurer without the otherwise long process beforehand but often will require either the ND or PH to sign an indemnity agreement before proceeding to do so, though legally there is no requirement for it as the liability already exists.

So, short answer is TP cannot sue you directly but it could end up coming back to you as the PH. Of cause you could have a contract with the ND to say they will indemnify you if this were to happen but a contract isnt worth the paper its written on if the ND has insufficient funds to indemnify you.

Quentin

N9eav wrote: »

The insurance company should always pay out 3rd party claims.......

That is true, BUT should there be any way that the policy has been voided (eg by the actions of the driver), then although the third party will get paid, the insurer will then turn its sights on the driver or if that fails, the policy holder to reimburse them.

mikey72

You'll still have the personal liability of your business insurance to fall back on, as you will always be liable for your employee, and they can sue you as the business owner.
So between the van insurance and business insurance, you should be covered, even if the van insurance tried to wash their hands off it.
No one will pay you for the van if there is a problem though, only third party claims will be covered for example if he was drunk, and your pl won't cover it.

Quentin

mikey72 wrote: »

You'll still have the personal liability of your business insurance to fall back on......

This post assumes that this "business insurance" is in place!

Quentin

Mr_Renovator wrote: »

They will use my van and I assume that I can place them on my policy as a named driver.

Contact your insurer (prior to employing your chosen applicant) with their driving history and check that they are prepared to accept them as an additional driver (and what, if any, extra conditions they would impose - eg extra excess in the event of a claim)

Mr_Renovator_2

Thanks everyone for your advice,

Paul

rs65

mikey72 wrote: »

You'll still have the personal liability of your business insurance to fall back on, as you will always be liable for your employee, and they can sue you as the business owner.
So between the van insurance and business insurance, you should be covered, even if the van insurance tried to wash their hands off it.
No one will pay you for the van if there is a problem though, only third party claims will be covered for example if he was drunk, and your pl won't cover it.

Are you sure about that? If you are talking about PL, it usually excludes liability arising from the ownership, possession or use of road licensed vehicles.

Dangermac

mikey72 wrote: »

You'll still have the personal liability of your business insurance to fall back on, as you will always be liable for your employee, and they can sue you as the business owner.
So between the van insurance and business insurance, you should be covered, even if the van insurance tried to wash their hands off it.
No one will pay you for the van if there is a problem though, only third party claims will be covered for example if he was drunk, and your pl won't cover it.

There is no cover for RTA risks under a normal Public Liability policy.

Some Public Liability policies provide contingent 'motor' cover - however, assuming that this cover was there, it only applies if the vehicle was not owned/leased etc by the policyholder. It can be useful if an employee was using their own vehicle for business use, and the employer gets sued for their actions. Extreme care needs to be used before replying on this cover.

DM

mikey72

Dangermac wrote: »

There is no cover for RTA risks under a normal Public Liability policy.

Some Public Liability policies provide contingent 'motor' cover - however, assuming that this cover was there, it only applies if the vehicle was not owned/leased etc by the policyholder. It can be useful if an employee was using their own vehicle for business use, and the employer gets sued for their actions. Extreme care needs to be used before replying on this cover.

DM

I'll have to put my hand up, mine covers that scenario, and loading /unloading, and moving other vehicles for site access.

My vehicle insurance actually doesn't cover named drivers for business use at the moment, it only covers me and my spouse, for our businesses.