Negligent Entrustment Liability

Negligent entrustment is a cause of action in tort law that arises where one party (Company) is held liable for negligence because they negligently provided another party (Employee) with a dangerous instrumentality, and the employee caused injury to a third party with that instrumentality. The cause of action most frequently arises where a company allows employee to drive a company and/or personal automobile.

With regards to commercial auto, negligent entrustment often arise after a collision where the employee was permitted to drive a vehicle without due regard for their qualification/ability to safely operate the vehicle. Although the driver’s own negligence in causing the accident is usually the primary issue, the two main focuses of investigation of a negligent entrustment charge are:

1. Company’s policies
2. Company’s actual practices

In other words is the company "practicing what it's preaching"?

Once a case is brought forth, the third party must prove the following elements:

1. The driver was incompetent
2. The driver was negligent in the collision
3. The employer should or knew of the driver's incompetence
4. The employer allowed the driver to operate the vehicle

Now what can a company do to lower it's exposure of negligent entrustment?

Here are some recommendations:

1. Written Motor Safety Program (with upper management buy-in)
2. Driver recruiting and selection practices
3. Monitor MVR's and implement a scoring system
4. New driver evaluation and orientation
5. Driver reviews and training
6. Post accident reviews

The following link is an example of a formal motor safety program that can be tailored to your needs: Motor Safety Program. As a reminder the most important aspect of implementing a motor safety program is to have upper management buy-in. With buy-in form upper management these programs will be short lived and ineffective.