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Insurance term

Vicarious Liability

Vicarious liability is a legal responsibility that can be assigned to one person or organization for the actions of another person, even if the first party did not directly cause the harm. In insurance, this can matter when an employer, vehicle owner, or other party may be held liable for someone else’s negligence under certain legal relationships or circumstances.

Example

A delivery company may be held vicariously liable if one of its employees causes an accident while making a work-related delivery.

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