Friday, August 27, 2010

Negligent Entrustment Claims on the Rise

An accident caused by an employee with an unfavorable driving history can jeopardize the financial stability of your company. Let me ask you something- Do you know FOR SURE that everyone that gets behind the wheel of your company vehicles has an acceptable driving record?

Let’s say that one of your employees has received a DWI in the last 3 years. Let’s also assume that same employee gets in a company vehicle and has an at-fault accident. He (or she) wasn’t drinking at the time of the accident, but the mere fact that you allowed them to drive your company vehicle opens up your company to a “Negligent Entrustment” lawsuit, which will more than likely NOT be covered by your auto carrier. If “Negligent Entrustment” is proven in a court, your business will be held responsible, and it will expose you as the employer to punitive damages that will not be covered under the auto policy in most instances.

Play it safe- check the driving record of every prospective employee as a part of the hiring process and BEFORE you put them behind the wheel. That goes for your current employees as well!
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