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Nevada: All You Need to Know About What Is Vicarious Liability in Insurance?

When most people think of people being held liable by the law in Nevada, they typically think of the law holding them accountable for their own actions. However, there are cases where a party could be held liable for the actions of another. Understanding how this could happen, and the circumstances in which it can happen, is crucial for protecting yourself in situations like this. It could also be important when talking to a vehicle accident lawyer or personal injury accident lawyer who you want to represent you and show you are not liable in a lawsuit.

Understanding Vicarious Liability

Vicarious liability is a legal term that stands for a legal doctrine where one party is legally liable or accountable for the actions of another. In Nevada, this means you can, for example, be liable for a car accident even if you were not driving at the time of the accident.

Vicarious liability can also arise when a corporation or business can direct or control the actions of another or another person. For example, a business could be liable if a personal injury attorney represents a client injured inside a business if an employee does not indicate the floor is wet, and the client gets injured in a slip and fall accident.

It can also apply in cases of parent-child relationships. In such cases, parents are liable if their children engage in willful misconduct. It is important to understand that the civil cause of action resulting from such misconduct is different from one considered under Nevada’s criminal laws covering child endangerment or neglect.

When Does Vicarious Liability Apply in Businesses?

There are several circumstances under which a business can be held liable for the actions of a specific person, especially their employees. One of these is covered under Nevada’s negligent entrustment law. The business can be liable if it allows employees to access potentially dangerous items, such as business vehicles.

Nevada also has laws governing negligent hiring, supervision and retention laws. These apply if a business fails to conduct reasonable background checks on its employees, hires employees it should have known or knew were dangerous, retains an employee who is dangerous, or fails to provide adequate supervision for employees handling potentially dangerous tasks.

Lastly, Nevada has respondeat superior laws. These cover an employer’s responsibility over the actions of their employees. They apply when the employee is under the direct control of the business (defendant) or if they were acting within the scope of their employment.

The most common example is nightclub security guards who become aggressive and injure patrons. In such cases, the security company can be held liable because such guards are deemed to be acting within the scope of their employment.

Even though businesses are liable in these cases, they can protect themselves and save a lot of money in settlements and compensation by getting vicarious liability insurance.

What Is Vicarious Liability in Insurance in Nevada?

Businesses are required by law to carry different types of insurance. Some of the most common types include general liability, errors and omissions, and umbrella insurance. The latter is useful because it covers everything not covered by general liability insurance.

By getting liability insurance that covers all incidences, businesses can protect themselves and their bottom lines from the oversights, mistakes, and actions of others.

Even though many insurance companies are fair in their coverage, some operate in bad faith where they refuse to step up and take care of businesses they insure.

Understanding Insurance Bad Faith and What to Do

Because businesses are liable for accidents and incidents on their premises and the actions of their employees as discussed above, they rely on their insurance to bail them out in case something happens.

Unfortunately, dealing with insurance companies is not always straightforward, and they may let you down when you need them the most. If they do, you should call an insurance bad faith lawyer immediately. Our attorneys at Karns & Karns Personal Injury and Accident Attorneys can help you handle such incidences and get the coverage you deserve.

Bad Faith Insurance Recovery

When vicarious liability applies in personal injury, pedestrian, car, and construction site accidents, some insurance companies may deny or delay coverage because they feel their client is not the one making the claim.

An insurance bad faith attorney Nevada can help resolve the matter quickly or even help you hold the insurance company liable. However, it is still good practice to research different insurance companies before signing with them to ensure they do not engage in such practices. Doing this will help you avoid a lot of headaches in the future.

Vicarious Liability and Malicious Intent

For an insurance company to cover vicarious liability or the victim to receive compensation, they must show the other party is liable. However, they are not required to show malicious intent in cases of vicarious liability.

Accidents happen, and that is understandable. But who foots the heavy medical bills, loss of income, and other damages suffered due to the personal injury? Vicarious liability laws help victims get the compensation and justice they deserve.

Vicarious Liability and Independent Contractors

Businesses work with independent contractors for a variety of reasons. Perhaps they need experts in specific areas or would not want to hire someone to handle these tasks. A reason many people do not consider is to avoid exposure to vicarious liability.

While in most cases the business, considered the principal, is responsible for the work of independent contractors, there are situations where businesses can pass liability to them. Such incidents include when you hire contractors for tasks that the law requires you complete yourself, you hire them to complete projects that would otherwise be dangerous to others, or when you are negligent by hiring contractors who are not qualified.

Regardless, you should always hire a personal injury attorney to represent you in case anything happens so you can use vicarious liability laws to protect yourself and your business.

Vicarious liability goes against what many people think about the primary party being held liable. It allows secondary parties to be held liable depending on their actions and how they contributed to an incident. Regardless of the incident, you should always hire a personal injury accident attorney from Karns & Karns Personal Injury and Accident Attorneys so they can help you determine who is liable.