Lessors who have been reading Vehicle Leasing Today know the dangers of doing business in a state that imposes vicarious liability upon lessors. Simply stated, the lessor is responsible for the negligent acts of a permissive operator. If the operator causes catastrophic damages, the deep-pocket lessor must pay the tab.

While the National Vehicle Leasing Association is actively lobbying the state legislatures that still impose lessor vicarious liability (LVL) upon leasing companies, the exposure caused by LVL remains. Short of leaving the business, there are steps a leasing company can take to manage this risk.

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