Understanding "Negligent Entrustment" May Save Your Business!
Negligent entrustment is a legal doctrine that permits an injured plaintiff to recover damages because an employer provided access to a company vehicle to a person that it knew or should have known posed an unnecessary risk to other motorists. The accident does not need to occur while the driver is working.
Negligent entrustment typically occurs when a company provides a vehicle to an employee (or their spouse) without taking reasonable efforts to ensure that the driver: (1) remains validly licensed; and (2) is free of a past history of crashes, tickets and other indicators showing a careless disregard for the public. An employer need not actually be aware of the problems. All that must be shown is that the employer should have known.
The best way to avoid the snare of negligent entrustment? Be armed with the most comprehensive knowledge possible about your drivers so there are no surprises.
Conducting an annual review of all drivers’ records can be one of the most important steps in “Protecting Your Assets.” Contact your Agent or ArborMAX for more information!
