While there are plenty of insurance products that are designed to protect you from direct liability – such as malpractice insurance – what happens if you are in danger of being sued due to the actions of another person? What if you are not directly responsible for damages, but you still own the liability because the incident in question occurred on your property?
Vicarious liability insurance is meant to protect your business from being sued in the event that your company is responsible for the actions of a company employee or contractor.
For example, if you hire someone by contract to refit the HVAC equipment in your office space, and some kind of accident occurs where this work causes damage or injury to a customer, you would need vicarious liability insurance. Or perhaps you are a homeowner looking to buy or sell a property. Vicarious liability would protect you from unintentional errors made by the real estate agent on your behalf.
Who is Liable
Anyone acting as an agent for you in a business transaction is basically an extension of your business. That’s why vicarious liability coverage is so important – it prevents you from being sued as an individual in a situation where an agent might make an error.
If you think this kind of insurance might be right for you, it might be time to speak with an insurance agent.