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Are businesses liable for employee’s acts?

On Behalf of | Jan 14, 2020 | Business and Commercial Litigation

One of the most important things that business owners can do is to reduce risk and liability. The only way that they can do this effectively is by fully understanding the law and using it to inform their decisions.

In many cases, businesses can suffer losses due to the unlawful and negligent actions of their employees. The actions of an employee could mean that the business will need to undergo costly litigation. If you are worried about this happening to your business, you must be aware of how this can occur.

Accidents that occur on the job

In many cases, when an employee is involved in an accident on the job, employers will be held liable for any damages that occurred. This is known as vicarious liability. A great example of vicarious liability is a road accident involving a truck. If the commercial truck driver is found to be at fault for the causation of the collision, the truck driver’s employer will usually be vicariously liable.

Negligent hiring

Employers have the responsibility to hire competent professionals for roles they are qualified for. For example, if a hospital hires a doctor who is irresponsible or unqualified, this is likely to result in patient damages. If a patient files a claim due to the doctor’s negligence, the hospital will probably be held liable because they engaged in negligent hiring practices.

If you are worried about being held liable for the actions of one of your employees, you should not delay taking action. By understanding your case early on in the process, you will have the best chance of being able to form a strategic response to the liability claims.