Protecting your property or business from known liabilities is the purpose of a quality insurance plan. However, did you realize you could potentially be held financially accountable for incidents or accidents that had nothing to do with you directly but occur due to business or employee actions? Vicarious liability insurance is the policy you need to provide additional coverage for when you are being held legally responsible for the wrongdoing of another person.
If you are a business owner, you will find that there are multiple areas of potential for vicarious liability.
- Independent contractors
- Agents or individuals with whom you partner
When liability passes from your employee to you or your company, the individual must be operating within the realm of their job duties. Even if they are not in compliance with the directions you issued, your company may be held liable for the resulting damage. The same holds true with the actions or inaction’s of those working on your behalf for projects, repairs or contractual agreements.
Vicarious liability insurance can be purchased as a stand-alone policy or the coverage may be included with your general liability, errors and omissions or workers’ compensation plans. Check with your broker for the specific nature of your coverage and any exclusions that might apply.