There is a myriad of risks that a business may face in all areas of operation, however, one area that some business owners overlook until it is too late is the risk that is posed by their employees’ actions. Under the law, this is known as “vicarious liability” and every business owner should be aware of what the potential legal and financial ramifications could be.
What Is Vicarious Liability
Per the legal doctrine of vicarious liability, a victim who sustains injury as a result of a business’s employee is entitled to receive financial compensation from the employer as long as the employee’s actions or conduct occurred within the scope of that employee’s employment.
One example of vicarious liability would be a delivery driver who runs a red light while rushing to make a delivery and crashes into another vehicle, resulting in the driver of that vehicle suffering serious injury. The business the delivery driver works for would be liable for the victim’s damages since the delivery driver was performing their work duties when they ran the light....