Under the doctrine of vicarious liability, who is liable for the actions of employees?

Study for the Utah Property and Casualty Insurance Producer Exam. Prepare with flashcards and multiple-choice questions, each providing hints and explanations. Get ready for your exam!

Vicarious liability is a legal doctrine that holds an employer or principal legally responsible for the negligent actions of their employees or agents, provided that those actions occur within the scope of employment or in furtherance of the employer's business. This means that if an employee causes harm while performing tasks related to their job duties, the employer can be held liable for any resulting damages.

This concept is based on the understanding that employers have control over their employees and benefit from their actions, creating a responsibility for the outcomes of their employees' conduct. Thus, if an employee is negligent while carrying out their work, the financial liability falls on the employer rather than solely on the employee.

The other choices do not align with the principles of vicarious liability. While employees may be held personally responsible for their own negligent actions, employers thus assume a significant role in liability for those actions. Clients of the business or the insurance company are not liable for the actions of the employees under this doctrine but may have varying responsibilities based on different legal frameworks.

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