Vicarious Liability And Cyber Liability

Vicarious liability is a system of strict liability through which one entity A is made strictly liable for the torts of another, B, even though A is not at fault. In short, it refers to the circumstances where individual is held responsible for the actions or omissions of another person. In a workplace context, it can be shown that an employer for instance can be liable for the wrongdoing or omissions of its employees in the course of their employment. Nevertheless, vicarious liability also imposes responsibility upon one person for the failure of another with whom the person has a special relationship including parent and child.

An action may be brought against A or B, or both. The paradigm example of vicarious liability is that of an employer’s liability for the torts of their employees committed within the course and scope of their employment. This is not the only example where such liability operates, for example, it also applies in the context of principal and agent

Insurance experts considered the risk of cyber liability losses will exceed the risk of fraud or theft. In this unrestrained environment, the company can take few steps to limit risks by purchasing cyber liability insurance. Cyber Liability insurance is insurance coverage that is deliberate to provide protection against data breaches, network security, intellectual property, privacy issues, error and omissions as well as other internet or technology related problems. Cyber liability insurance also cover data breaches related to the physical loss of laptops and other computer equipment when they are stolen by employees or people outside of the corporation. A breach is well-defined as an event in which either an individual’s name, social security number, driver license number, and a financial record card is possibly laid at risk in form of electronic or paper