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Insurance

Vicarious liability

As a finance professional, it is important to understand the concept of vicarious liability. This refers to the legal responsibility one may have for the actions or wrongdoings of another person, typically an employee or agent. Essentially, it means that an individual or organization may be held liable for the actions of someone they are responsible for, even if they were not directly involved in the incident. This can have significant implications for businesses and individuals, making it a crucial concept to grasp in the world of finance.
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