9 Steps to Avoid Negligent Entrustment – Steve Macauley / KMRD

Steve Macauley, a Risk Manager at KMRD Partners was published by “Property Casualty 360”

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.

When it comes to negligent entrustment, it is also important to remember that punitive damages are not insurable in most states. Since punitive damages are meant to punish employers, to do otherwise would be against public policy.

Continue reading this article at http://www.propertycasualty360.com/2011/07/27/9-steps-to-avoid-negligent-entrustment 

Steve Macauley is a partner with KMRD Partners Risk & Insurance Solutions, a leading risk management and human capital solutions firm based in Warrington, Pa.

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