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Insurance PARKING HEALT By Kathy Phillips


Driver’s License Revie Shuttle Drivers


In a recent article from the National Alliance for Insurance Education & Research, Steve Holland states:


“When auto liability lawsuits arise from business vehicle operations (such as in


valet services), the plaintiff’s case discovery processwill almost certainly obtain infor- mation about the driver’smotor vehicle record. “If a driver has a history of citations for traffic violations, reckless driving or driv-


ing while under the influence of alcohol or drugs (DUI), the plaintiff’s attorney will attempt to paint a picture of negligence by the employer for allowing such a reckless individual to drive for their company. “If the employer had not checked the MVR at all, then the attorney can bolster


PLAZA TOLL BOOTH


their negligence argument by suggesting that the employer didn’t care enough about public safety to even bother checking.” For these reasons regular evaluation ofMVR reports is a standard component in


fleet (valet) safety programs. For an MVR review to be successful, employers must consider exactly which records will be evaluated, and how they will guide employ- ment and driving assignment decisions. For example, will a citation for running a stop sign carry the same weight as a


conviction for DUI?When evaluating a typical 36-month driving history,will itmake a difference to the employer if citationswere received lastmonth or two years ago?


Will a citation for running a stop sign carry the same weight as a conviction for DUI?


Three legal concepts come into play in assessing the risk of liability involved


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with providing a vehicle to an employee: -Negligent Entrustment. This holds that an employer can be held liable for dam-


ages if a person to whomthe employer provided a “dangerous instrumentality” (i.e., a vehicle) causes damage or injury to another party with that instrument. Thus, anyone who, while driving a vehicle, causes damages or injures to a third


party or parties exposes the employer (provider) of the vehicle to risk of liability under negligent entrustment law. Generally, the employer is held liable if the employer knew, or could have easily


uncovered, that the person had a propensity to be dangerous via the possession or use of the vehicle. - Negligent Hiring. This is identical to negligent entrustment, except for two key


aspects. First, the person must be an employee; negligent entrustment risk covers anyone to whom the employer provides the vehicle. Second, the employer need not provide any “dangerous instrumentality”; the actions of the employee in any circum- stance suffice. Indeed, when a company vehicle driver (employee) has an accident, the company is exposed to the risk of liability under both negligent hiring and negli- gent entrustment. - Vicarious Liability. Under this legal concept, the employer can be held liable for


damages caused by an employee even if the employer has done nothing wrong – i.e., the company performed the requisite background and driver checks and found no evidence of a propensity for dangerous behavior.


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