Vicarious liability

A vicarious liability can be defined as the liability created by an action or non-action by a person working on behalf of him, when he is responsible for all the action or inaction of such person within the limits of their association. So when an employee or worker cause a loss/damage to somebody in the normal course of his duty, the employer will be responsible for such loss. The employer will be held responsible for the tort of the employee even though the employer being held responsible may not have done anything wrong.

Liability insurance is available to offset damages that may be associated with vicarious liability

Void Policy

A Policy which legally does not exist.

Voidable Policy

A Policy where the Insurer or the Insured has a right to avoid the Policy.