Agents can provide meaningful service to their clients by warning them about the risks of negligent entrustment.

Negligent entrustment arises when one party (the entrustor) is held liable for negligence because he provided another party (the entrustee) with a dangerous instrument, and the entrusted party caused injury to himself or a third party, or damaged property, with that instrument.

One way a business can find itself at risk of negligent entrustment is by allowing an employee to drive a vehicle on company business, when management knows or should know that the driver intends or is likely to drive the vehicle in such a manner as to create an unreasonable risk of harm. This can happen when the employer chooses to overlook the fact that an employee has a history of substance abuse, anger management and/or reckless driving.

Recommended For You

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.