What is Negligent Entrustment with Commercial Auto Insurance?

| November 15, 2016

As a business owner, it’s important to recognize all of the risks that can impact your business.

If you have drivers, it is essential for you to understand the amount and type of risk that your drivers present. In the event of traffic incidents, you could be liable for the actions of your drivers.

Liability for Bad Drivers

If your business does not take reasonable action to ensure that a driver is a safe driver, you could be liable for their accidents. You put yourself at risk if you allow someone who you know has a poor driving record operate on behalf of the company. You could be responsible for any accidents or damage that person creates.

This is negligent entrustment. You’ve entrusted your company vehicle to someone that has a poor driving history. Those may be moving violations. It could be due to a significant accident he or she was responsible for causing. As a business, it is up to you to take every step reasonable to learn about a driver’s background.

Negligent entrustment occurs whenever you allow a person to use a vehicle while knowing or having any reason to believe that the person has some level of risks to others. Damage awards could be higher if your company has to pay them because of negligent entrustment.

You should always verify a driver’s qualifications before allowing him or her to do so. Taking these steps can help to reduce risks against your company and other drivers on the road.

If you have questions about Muncie commercial auto insurance, call us today at 317.398.9797

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