Allowing an employee to drive on behalf of their employer without ensuring that the individual has a valid driver’s license and clean driving record can be considered
negligent entrustment. Employers can be held liable by third parties under negligent entrustment tort laws for auto accidents caused by an employee whose poor driving
record was known or could have been easily discovered by that employer.
Plaintiff’s lawyers understand that negligent entrustment awards can be a real payday in an auto accident lawsuit. Lawsuit settlements for property damage and bodily injury can be measured and contained by the actual costs of the repairs and medical bills. However, negligent entrustment awards are made based on the egregiousness of the facts and the jury’s emotions.
Because commercial auto insurance policies often exclude coverage for damages awarded due to negligent entrustment, such claims can financially devastate a company.
It is crucial your business knows which employees are driving a company car or their personal vehicle for company business. Screen the driving records of all prospective
new hires 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. For additional questions, contact Dan Bukaty at dbukaty@bukatyagency.com.