What Vicarious Liability Coverage Is and Who Needs It

When you’re opening a medical office, like a chiropractic practice, there are many ways to reduce risk, including through vicarious liability coverage. The business world is governed by all sorts of liability policies. Some types, like vicarious liability, are less commonly known than others. But businesses still need their insurance policies to cover it. Read this article to learn what vicarious liability coverage is and who needs it.

What Is Vicarious Liability Coverage?

But what is vicarious liability insurance coverage? Employees of a corporation may act inappropriately throughout the course of conducting business. In a company, you may see discrimination, sexual harassment, or other toxic behaviors. Any misdeeds an employee commits through their business could create a scenario in which the company is liable for its actions.

In the legal field, this is known as vicarious liability. It exists so the law can protect victims. Because of vicarious liability, people can sue if they are discriminated against or harassed. Businesses, however, can protect themselves from claims of vicarious liability by getting insurance policies that include vicarious liability coverage.

Respondent Superior

However, a company may not just be liable for the actions of its employees. They can also be held liable for what they did not do. If an employee neglects a duty, and that omission creates harm for other people, the company may still be held liable. Using legal terms, a business in that situation is under the respondent superior doctrine. This means that a business or a high-level figure in the business is liable for the actions of an employee so long as those actions happened when the employee was doing their duties. This includes the duties they fail to complete.

Who Needs Vicarious Liability Coverage?

Creating a compliance plan for a chiropractic practice or other medical clinic can help prevent unethical practice, but sometimes you need a safety net. People looking to know what vicarious liability coverage is and who needs it must first understand that any business with employees or volunteers is capable of having vicarious liability. Therefore, any business with employees could benefit from vicarious liability coverage.

People interested in learning more about insurance agent errors and omissions insurance policies should visit Baxter & Associates. You can also explore our blogs to learn more about vicarious liability coverage and supplemental insurance for CRNAs and other medical professions.