Vicarious liability is based on the principle that the person who puts a risky enterprise into the community may fairly be held responsible when those risks emerge and cause loss or injury to members of the public. Effective compensation is a goal and deterrence is also a consideration. The hope is that holding the employer or principal liable will encourage such persons to take steps to reduce the risk of harm in the future.
Vicarious liability does not depend on the employer’s fault but on the employer’s role. Liability is imposed by a policy of the law upon employers, even though they are not personally at fault, on the basis that those who set in motion and profit from the activities of their employees should compensate those who are injured by such activities, even when performed negligently. Liability is extended to the employer on the basis that because they can spread the risk through pricing and insurance, they are better organised and able to bear that risk than the employee.
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