Re: BIG Mistake, will never loan again!!!!!!
The other thing one must worry about is liability when loaning machines on which people frequently get hurt, like ATVs. Suppose, in the situation that started this thread, the girlfriend had been seriously injured. Her insurance co. would pay her (if she had insurance) and then come looking for reimbursement, and one of the things that would be alleged is "negligent entrustment", that is, that you loaned a dangerous machine to someone whose operating skills and experience were not a thoroughly known factor. This kind of thing comes up more frequently in situations where, for example, you loan a car to a 17-year-old who promptly gets into an accident. It is very likely that most of us do not have insurance to cover such things, or not near enough. Remember that your homeowners insurance co. is "in the business of collecting premiums, not the business of paying claims." I would think you would need a special clause or an umbrella policy on normal homeowners coverage to cover a situation like that.
One partial solution to this problem is to get anyone who borrows your machine to sign a waiver which says something like "You agree that you will be responsible for all damage to the machine, liability for injury/death of any person resulting from your use, and damage to any property, and will hold owner harmless thereon. You and any person riding with you are doing so at your own risk. You agree to tell your passengers this." A waiver of this kind will not save you from suit by third parties, but will likely save you from suit by the borrower or a passenger. It further would put the ultimate liability to any third party back on the borrower (although one cannot get blood from a turnip, even in these modern times).
Never be of the opinion that your own relatives and best friends won't sue if they get hurt. As mentioned above, if they are covered by some insurance of their own, they may be compelled to sue to help their insurer recover its payment. The kind of waiver I discuss above doesn't have to be written up in such-and-such a formal way or notarized, etc. You sign one very much like it whenever you buy a ticket for a roller-coaster or rent a car or jet-ski.
Friendly free advice from:
Starcraft67
a legal aid lawyer in Marietta Ohio, Ohio State '80, Go Bucks!!!!!!!!!!!!!!
