Every business owner should be aware of vicarious liability.

“Vicarious liability” means a person may be held liable for the actions, wrongdoings and or omissions of another person. In workplace context, it refers that an employer can be liable for the acts or omissions of its employees when the event giving rise to injuries took place in the course of their employment.

If an employee causes harm to others or even themselves while on company property or while operating or using company equipment, the business owner is vicariously liable. But the most important point which most business owners don’t know is that employers can also be held liable for harm caused by an employee anywhere and at any time if the caused harm occurs within the course and scope of the employment.

In law context “within the course and scope of employment” refers to situations where the harm causing event occurs while the employee performs tasks related to his or her job duties or while the employee travels to or from workplace.

If an employer, for example, asks an employee to buy a coffee at the coffee shop on the way back workplace and if that employee injures people or causes an accident en route, the employer may be held liable even the employee is driving a personal vehicle.

To avoid harshness of vicarious liability, I suggest every business owner to have employment contracts and clearly define the employees’ job duties in it. I also strongly recommend employers to purchase a commercial general liability insurance policy that covers employees at work and in personal vehicles.

By Metin Caglar, Esq./Published in partnership/agency law articles