Vicarious liability is liability imposed on one party for another person’s conduct because of a legal relationship.
Why vicarious liability matters
Vicarious liability matters because a person or organization may be legally responsible even if it did not personally commit the harmful act. The most common example is employer responsibility for certain employee conduct within the scope of employment.
The doctrine affects who can be sued, insurance coverage, settlement value, and risk management.
Where vicarious liability appears
Vicarious liability appears in tort lawsuits, employment disputes, agency disputes, business liability analysis, insurance claims, and civil complaints involving multiple defendants.
Practical example
A delivery driver negligently causes a crash while making deliveries for an employer. The injured person may claim the employer is vicariously liable if the driver was acting within the scope of employment.
How vicarious liability differs from nearby terms
Vicarious liability differs from direct liability because direct liability is based on the party’s own conduct. It differs from strict liability because strict liability does not necessarily depend on responsibility for another person’s act.
Related terms
Quick knowledge check
Why might an employer be named in a lawsuit even when an employee personally caused the injury?