Companies have been warned about ‘fronting’ – allowing people who are not directly connected to the company to drive under its insurance.

Mike Smith, commercial motor technical manager at Norwich Union, said: “Fronting, in most instances, will invalidate the company insurance policy, leaving the business to pay for any damage to their vehicle.

Also, if any other driver is involved in an accident, while the insurer will be required to meet any liability cost, they can seek recovery of any such payments from the policyholder.”