The basic principle of vicarious liability is that, if an employee injures someone in the course of their employment, the employer may be vicariously liable. This simply means that the injured person may be able to win compensation directly from the employer, rather than from the employee.
There are many instances where vicarious liability may occur. For example if you were involved in a road traffic accident with a van and the van driver was at the time of the accident acting in the course of his employment. If the van driver was at fault for the accident then his employer may be vicariously liable. An employer can be vicariously liable for the acts or omissions of his or her employees. An omission is simply a failure to do something. An example could be an employee failing to secure or put down a safety device on a machine which later causes injury. The failure to do something was the negligence and thus his or her employer could be vicariously liable.
The theory behind vicarious liability is that the employer is thought to have “deeper pockets” to compensate injured victims. Obviously if a company has insurance in place then ultimately it will be an insurance company who pays out compensation. This is why companies and businesses take out employer’s liability insurance.
It goes without saying that employers do not like vicarious liability.
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