What Is Vicarious Liability? Definition & Examples

Vicarious liability, or imputed liability, is a legal rule that holds a person or company responsible for actions committed by others or by their employees. Typically, it applies to those who are in control of people who cause harm to victims.

For example, a company (called the principal) is in control of its employees. So, if an employee (called the agent) injures someone while on the job, vicarious liability rules could apply to hold the company accountable.

Vicarious liability gives victims more potential defendants in a personal injury case. In many situations, plaintiffs will pursue a case against the person directly responsible for hurting them and others who are vicariously liable for the losses that occurred.

Vicarious Liability vs. Strict Liability

It is important to understand how vicarious liability works because it is different from a typical personal injury claim. In a typical tort case, a plaintiff must prove certain things in order to be entitled to compensation. Plaintiffs must prove:

• The defendant(s) owed a duty of care (to act reasonably)
• The defendant(s) breached that duty (usually by acting negligently or failing to exercise the care a reasonably prudent individual would have exhibited in the same situation)
• The breach of duty was the direct or proximate cause of harm
• The plaintiff suffered losses that they should be compensated for

However, plaintiffs do not always have to prove negligence. One exception is when the doctrine of strict liability applies. Strict liability requires that defendants be held accountable for damages regardless of whether they were negligent or acted intentionally. If they did something, they are held responsible for it, no matter the circumstances.

For example, strict liability applies to speeding. Even if a driver didn’t intend to speed or actually know they were speeding, if they are over the limit while driving, then they are responsible for doing so.

Vicarious liability is a type of strict liability. Those who are sued under this legal doctrine can be held accountable for losses even without negligence. For example, if a server in a restaurant drops a hot pot of coffee on you and burns you, the restaurant is liable for the server’s actions. The restaurant is the principal in control of the server (the agent) and is responsible for their actions while on the job, even if the restaurant itself did nothing negligent.

Vicarious liability can apply in any situation where one person or company is in control of the actions of another or where an individual is acting on behalf of someone else. Here are four common examples of vicarious liability.

Employer-Employee

An employer can be vicariously liable for the harmful actions if an employee if:

• The employee was on the clock at the time of the incident
• The employee caused harm while performing an activity he was hired to perform
• The employer somehow benefited from the activity the employee was performing at the time of the injury

If a nurse in a hospital causes harm by giving the wrong medication to a patient while on the clock, this would be a clear example of a situation where her employer could be vicariously liable.

Partnership-Partner

When people form a partnership, each partner acts on behalf of that partnership. If one commits a negligent or wrongful act and harms a third party, the partnership can be held liable. For example, if two people start a taxi service and one of them causes an accident while picking up a patron, the partnership can be vicariously liable for injuries resulting from the crash.

Parent-Child

In some cases, parents can be held responsible if their children injure others. State laws vary depending on exactly when parents can be held responsible and what the limits of their liability are. For example, if a child vandalizes a school, the parent could be held responsible for the damages.

Corporation-Directors and Officers

Corporate directors and officers act on behalf of the companies they work for. A corporation can thus be held liable for any torts that are committed by officers or by directors while they are acting for the corporation.

Vicarious liability also applies to automobiles. If you give permission to your child or to a friend to use your car, you can be held responsible for accidents they cause while using your car.

Although vicarious liability, meaning the legal principle where one party can be held liable for the actions of another, occurs in many contexts, it is especially common in the workplace. That’s because employees engage in many potentially harmful actions that their employers could become legally responsible for.

Examples of Vicarious Liability Offenses in the Workplace

There are many examples of vicarious liability offenses in the workplace. Here are just a few:

• An employee at a sandwich shop leaves a refrigerator open, causing food to spoil and resulting in patrons becoming seriously ill. The sandwich shop owner could be vicariously liable.
• A surgeon employed by a hospital leaves a surgical instrument inside of a patient. The hospital could be vicariously liable.
• A trucker on a delivery route causes an accident. The company that employed the trucker for a delivery could be liable.

Third-Party Offenses and Gray Areas of Vicarious Liability

While there’s a strong case to be made that employers are liable for torts that workers commit while doing their job, there are many other gray areas where it’s not as clear whether a person or company should be vicariously liable or not.

For example, in some cases, police departments have been determined to be vicariously liable for crimes committed with duty weapons that were unsecured during off-duty periods.

If an employee is commuting to work or injures someone while engaged in a workplace social event, such as at a company holiday party, it can also be more complicated to determine if an employer should be held vicariously liable under these circumstances.

Vicarious liability exists due to the legal doctrine of respondeat superior, which essentially means let the master answer. Employers, parents or others with a superior legal relationship to someone who does harm are expected to answer for those who are under their control.

Vicarious liability rules also exist in order to provide protection to victims of injury. Often, an individual employee or a child will not have the resources to provide compensation to those they harm through their negligence or wrongful actions. But companies and parents generally do.

Through the doctrine of vicarious liability, those who have resources (including the ability to buy insurance) and who were in a position to prevent harm but who failed to do so can be held accountable so victims do not go uncompensated.

Is Malicious Intent Required for Vicarious Liability?

Malicious intent doesn’t have to be present for vicarious liability to apply. The focus is on the nature of the relationship between the employer and the employee and whether the employee’s actions were within the realm of their employment.

The intent behind the employee’s actions, whether negligent, reckless or even intentional, doesn’t exempt the employer from vicarious liability if the actions are job-related. So, even in cases where an employee’s actions are accidental but occur while they are performing their job duties, the employer can still be held liable.

How Can You Protect Yourself From Vicarious Liability Lawsuits?

Vicarious liability is not absolute. One of the most common defenses is the frolic and detour defense.

If employees are acting outside of the scope of their employment when they cause harm, the frolic and detour rule determines if their employers will be held vicariously liable.

For example, a pizza company could be vicariously liable if their delivery person delivered a pizza to an office building and hit someone in the face with a door when using the building’s restroom. This “detour” is reasonable, and it is foreseeable that the employee could use a restroom while performing their job.

However, if the delivery driver stopped to pick his child up from school while en route to deliver a pizza and caused an accident in the school parking lot, this is a “frolic” and is not foreseeable as part of the driver’s job. The pizza company would not be liable.

Employers can also raise other defenses, including arguing that the victim was solely or partially responsible for causing their own injuries.