Los Angeles Claims Adjuster Property and Causality Practice Exam

What term is used for when an employer may be charged with the negligent acts of an employee?

1. Vicarious Liability

2. Comparative Negligence

3. Assumption of Risk

4. Intervening Cause

The correct answer is: Vicarious Liability

The concept of vicarious liability refers to the legal principle that an employer can be held responsible for the negligent acts committed by an employee while the employee is acting within the scope of their employment. This principle is crucial in the context of claims adjustment because it defines the circumstances under which liability can be attributed to an employer even though they themselves did not directly cause harm. Under vicarious liability, an employee's actions, if performed in the course of their duties, can create liability for the employer. This means that if an employee causes damage or injury while carrying out tasks for the employer, the employer may be held liable for those acts, enabling affected parties to seek compensation from the employer. This principle is particularly relevant in cases involving accidents or incidents that occur within the employment settings, as it can affect how claims are handled and the potential financial exposure for businesses. Understanding vicarious liability helps claims adjusters navigate the complexities of employer and employee responsibilities within the realm of property and casualty claims.