Property and Casualty Insurance Practice Exam

Which of the following actions can cause vicarious liability for an employer?

1. Promoting unsafe work conditions

2. An employee causing damage during work hours

3. Employees working remotely from home

4. A manager's personal legal issues

The correct answer is: An employee causing damage during work hours

Vicarious liability refers to a legal doctrine where an employer can be held responsible for the actions of an employee if those actions take place within the scope of employment. The key factor here is whether the employee was acting in the course of their duties when the wrongful act occurred. In this case, an employee causing damage during work hours is directly related to the concept of vicarious liability. If an employee, while performing their job duties, inadvertently causes damage to a third party or property, the employer may be held liable for that conduct because the employee was acting in the interest of the employer at that time. The principle of vicarious liability supports the idea that employers have a responsibility to ensure that their employees conduct their activities lawfully and safely while performing their job functions. The other options do not establish vicarious liability in the same way. While promoting unsafe work conditions could lead to liability, it typically falls under direct liability rather than vicarious liability. Employees working remotely might limit the application of vicarious liability depending on the context of the remote work and whether the act was within the scope of employment. Lastly, a manager's personal legal issues do not typically implicate the employer in vicarious liability, as those issues would not