Vicarious Liability: Meaning And Examples (June 2025)

Vicarious Liability Law

Under the American legal system, injured victims usually cannot hold someone liable if they did not cause an injury. But this is exactly what happens with vicarious liability, meaning that you sue someone other than the person who caused your injury.

Determining this liability involves using the principle of vicarious negligence. Vicarious negligence only applies in narrow situations, including the following:

Employees

Employers bear legal liability for certain acts performed by their employees. Lawyers and judges also refer to this type of liability as “respondeat superior.”

This is one of the most common applications of vicarious liability. Employer liabilities only include employee actions performed in the course and scope of their employment, though. Thus, employers are not vicariously liable for employee actions that happen on their own time away from work.

Instead, the victim must show the employee acted on the employer’s behalf when the incident occurred. The doctrine does not require proof that the employer approved the employee’s actions. An employer bears liability for “rogue” employees when they perform job-related actions.

For example, suppose that a tree trimmer accidentally cuts the line when cutting through a branch. The branch falls on someone’s car, injuring the driver.

In this case, the tree trimmer probably acted negligently by cutting through the line. They also cut a branch while a car passed underneath it. But even if the worker violated company rules or safety regulations, accident victims may still be able to hold the employer liable and seek a personal injury settlement.

Agents

Certain relationships do not fall squarely into the legal definition of “employment.” The person in charge is called the principal, and the person acting on their behalf is called the agent. In these relationships, the agent acts for the principal’s benefit and under their direction and control.

Some examples of the principal-agent relationship include:

• Master and servant
• General contractor and subcontractor
• Employer and independent contractor, in some cases

For example, many medical residents work as independent contractors of hospitals and clinics. However, since these residents act under the supervision of the facility, an injured patient may seek a medical malpractice payout from a hospital for acts performed by a resident.

Business Partners

Business partners may be held liable for each others’ actions. This doctrine only applies in a true partnership, though. States created limited partnerships, limited liability partnerships (LLPs) and limited liability companies (LLCs) so that victims could not pursue claims against co-owners uninvolved in the injury.

Children

Parents are usually not vicariously liable for the actions of their children. Still, victims can seek to hold parents liable in narrow circumstances. Specifically, if a child injures the victim because the parent failed to supervise the child, the parent may be held vicariously liable for the accident victim’s losses.

For example, suppose that the parent knows their underage child has stolen their keys and taken their car for joyrides in the past. If the parent fails to take any actions to prevent it from happening, they may be liable for a car crash caused by the child.

Worse yet, the parent’s auto insurer will likely deny coverage for any car accident settlement because the child was not covered by the policy.

Examples of Vicarious Liability

The principle of vicarious liability applies to more situations than many people realize. These are a few example scenarios:

Careless Employees

If an employee acts carelessly or negligently while on the clock, their employer may be held responsible for their actions. For example, imagine you walk into a grocery store and immediately suffer a serious slip and fall. You discover the employees mopped the floor but failed to put up a wet floor sign.

In this case, you could file a lawsuit against the grocery store chain. Vicarious liability has helped countless people receive the compensation they deserve. If your only option were to sue the employee who was directly responsible, you would likely be able to recover little compensation.

Negligent Truck Drivers

Because of the massive size difference between commercial trucks and passenger vehicles, truck accidents can cause extremely serious injuries and major property damage. That’s why commercial trucking companies typically have multimillion-dollar insurance policies.

Those policies cover negligent actions by the company’s employees as well as direct negligence by the company itself. For example, if a trucker causes a crash and is arrested for DUI at the scene, the truck driver — not the trucking company — is responsible.

However, because of vicarious liability, the trucking company could be held responsible for the injuries and property damage caused by the driver.

Medical Malpractice

If an independent doctor acts negligently and causes you harm as a result, you may be able to file a lawsuit for medical malpractice against the doctor themselves. However, if the doctor is employed by a hospital or larger health system, you may be able to pursue both the organization and the individual doctor for damages.

For example, imagine that you go to the emergency room after a dog bite. The doctor thinks you need antibiotics, and they give you penicillin despite the fact that your chart says you’re allergic. If you suffer a serious reaction, you could likely name both the doctor and the hospital as defendants in a malpractice lawsuit.

What Happens When a Party Is Vicariously Liable?

When a court holds a party vicariously liable to an accident victim, several avenues open. First, the accident victim has access to a party better positioned to pay for their losses. For instance, an employer often has liability insurance to cover injuries to third parties.

Second, the party that caused the injury often gets released from any liability. Thus, once a court finds an employer vicariously liable, the employee’s liability disappears.

If a truck driver negligently causes a semitruck accident, for example, you can often pursue a claim against the trucking company that employed them. Once the trucking company is on the hook, the truck driver is off the hook.

How to Avoid Vicarious Liability

If you are an employer, the last thing you want is to face a lawsuit because of employee negligence. Here are a few tips to reduce your risk of vicarious liability:

• Make sure you establish a clear process for addressing customer complaints
• Create clear employee handbooks to establish rules and guidelines
• Provide thorough employee training and frequent refresher sessions
• Consult an attorney to review your policies
• Purchase general liability insurance and/or errors and omissions insurance

It’s also important to remain vigilant for any potential business risks. The faster you can address a potential liability, the less likely you are to face a lawsuit.

Learn More About Vicarious Liability From ConsumerShield

Without vicarious liability, you could win a case against someone who cannot pay a judgment. However, once you shift liability to another party, you may have many more options for seeking compensation.

ConsumerShield provides educational resources to those facing difficult legal problems. We can also help you find a lawyer to represent you. Contact us for a free case evaluation to learn more today.