Negligence

Negligence:

Failure to use a reasonable degree of care in a particular situation; includes both wrongful acts and acts of omission.

  • Negligence is the legal cause of damages if the negligent act directly caused those damages.
  • Liability insurance indemnifies the third party for the damages caused by the policyholder.
  • Liability Insurance never covers intentional acts of wrongdoing on the part of the insured.

Vicarious Liability:

The transfer of negligence from one party to another.

Often applies to:

  • Employers: If Harry’s negligent act takes place at work, his employer is vicariously liable for his actions
  • Parents: If Harry is under the age of 18, his parents are vicariously liable for his actions

Four Elements of Negligence

  1. The defendant had a legal  duty to act (or not act) in a prescribed manner
  2. The defendant failed to act accordingly (called a breach of duty)
  3. The plaintiff suffered actual loss or injury due to the defendant’s action or inaction
  4. The loss or injury to the plaintiff was a direct result of the breach of the duty of the defendant