Certified Professional in Health Care Risk Management (CPHRM) Practice Exam 2025 - Free CPHRM Practice Questions and Study Guide

Vicarious liability refers to a legal principle whereby an employer or principal can be held liable for the negligent actions of an employee or agent that occur while they are performing their job duties. The rationale behind this principle is that employers have a responsibility to ensure that their employees adhere to acceptable standards of care while executing tasks related to their employment.

In this case, when an employee causes harm while performing their duties, it demonstrates that the actions which led to the harm were conducted within the scope of their employment. As a result, the employer can be deemed responsible for the employee's actions, thereby illustrating the application of vicarious liability.

The other options represent scenarios where vicarious liability does not apply, such as a company failing to meet safety regulations, which points to the company's own negligence rather than its employees' actions, or a customer slipping on a wet floor, which typically concerns premises liability rather than actions taken by employees. Lastly, breaching a contract pertains to contractual obligations and does not relate to the employment relationship or negligence, as would be the case with vicarious liability.