What you need to know about negligent entrustment

Written by mBurse Team Member Aug 7, 2017 12:04:00 AM

Screening new hires is key to any risk management program. It’s the only way for organizations to ensure that they’re hiring honest, reliable employees. Any company hiring employees whose job responsibilities may include operating a vehicle absolutely must perform a Motor Vehicle Record (MVR) check. If someone is going to be driving for your company, you should take every reasonable precaution to make sure they’re a safe driver.

Make MVR Checks Annual 

An MVR check is recommended not just prior to hiring a new employee, but every year, as long as that employee’s job includes driving in some capacity. This includes making deliveries, operating a company car, renting a vehicle for company business, and even performing minor errands, like picking up the boss’s dry cleaning. Unfortunately, many organizations fall short when it comes to generating annual MVR checks.

Employees’ driving records change frequently. Someone who had a perfect record last year may now have an accident and two speeding tickets. And some people are just not as good at driving as others. That’s why a robust risk management policy will require MVR checks for all mobile employees annually, as well as after any incident.

Mobile Risk ebook

Use MVR Checks to Predict and Reduce Risk

An MVR check can reveal such valuable information as traffic violations, vehicular crimes, citations, DUI convictions, driving points, unanswered summonses, and lapses in insurance. Past behavior tends to predict future behavior, allowing you to establish a risk profile for each employee.

Every company, in its corporate vehicle policy, should define parameters for what is and isn’t acceptable in an MVR. Defining MVR parameters reduces risk, allowing you to either retrain or terminate an employee that poses an unacceptably high risk.

Protect Your Reputation with MVR Checks

If an employee is involved in an accident during business hours, the first thing the other party will do is to generate an MVR, in order to prove negligence and support a potential lawsuit. If you haven’t performed a recent MVR check, then you could be in for a big surprise—and your company held liable.

That’s why it is vital to stay proactive and use data from MVR checks to provide corrective activities for employees whose risk profiles fall outside company parameters. A negligent entrustment suit can cost your organization more than just time and money—it can also tarnish your reputation.

MVR checks can even protect employees’ reputations by quickly discovering errors on driving records. These errors may impact not only their standing in your company, but also their personal insurance premiums.

If you are not generating annual MVR checks your business vehicle policy has a blind spot. Don't neglect annual MVR checks, Contact us to learn more about our corporate reimbursement governance plan and how you can better mitigate your organization’s risk with a proactive approach.

Your companies risk is based on your employees that drive.

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