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Negligent Entrustment
- 1. Negligent Entrustment Negligent Entrustmentis best defined as entrusting a vehicle to an individual without ensuring that the individual has a valid driver’s license or allowing the person to drive a company vehicle despite the individual’s past driving history. Employers can be held liable under tort law for negligent entrustment if an employee’s driving record was known or would have been easily discoverable by that employer. Plaintiff’s lawyers understand that negligent entrustment awards can be the real payday in an auto accident lawsuit. Lawsuit settlements for property damage and bodily injury can be measured and contained by the real costs of the repairs and medical bills. Negligent entrustment awards, however, are made based on the egregiousness of the facts and the emotions of the jury. Because commercial auto insurance policies often exclude coverage for damages awarded due to negligent entrustment such claims can financially devastate a company. It’s important that your business know which employees are driving a company car or their personal vehicle for company business. Screen the driving records of all prospective employees and conduct an annual review of all current employees who could put your company at risk. Generally an employee with a DUI, suspended license or two moving violations within three years should not be allowed to drive any vehicle for company business. When in doubt ask your commercial auto insurance underwriter for guidance. If you have additional questions contact Dan Bukaty at 913.345.0440 or e-mail dbukaty@bukaty.com. Bukaty Companies 11221 Roe Ave., Ste. 200 Leawood, KS 66211 Phone: 913.345.0440 Toll-Free: 888.657.0440 Fax: 913.345.2608 www.bukaty.com September 24, 2008 Keeping Your Business Informed and Prepared Risk Management Bulletin January 11, 2012