Vicarious Liability

What Does Vicarious Liability Mean?

Vicarious liability is a legal principle stating that one party can be held responsible for the negligent actions of another party with whom they share a special relationship, such as a parent and child, employer and employee, or vehicle owner and driver. In the context of insurance, employers or other parties at risk of vicarious liability may require additional insurance coverage to protect against the consequences of the other party’s negligent behavior.

Vicarious liability is also referred to as imputed negligence.

Insuranceopedia Explains Vicarious Liability

Vicarious liability arises when one party is deemed responsible for the actions of another or when one party acts as an agent for the other. For example, if a truck driver accidentally damages a low-hanging bridge because they failed to realize the truck’s height exceeded the clearance, the trucking company could be held liable under vicarious liability. Without proper liability insurance, the company would be required to pay for the damages out of pocket.