Vicarious Liability
Being held responsible for someone else's work, such as a sub-consultant you hired, because of your relationship with them.
What it means for your firm
When you hire consultants as the prime, the client may look to you first for their work. Your professional liability may respond for work you are legally responsible for, depending on the policy, but it does not insure your consultants.
Written consultant agreements, matching insurance requirements and certificates on file are the usual protections.
General definition for education only. It is not an interpretation of any policy or contract, and it is not legal advice. The wording of your own policy and contract controls. Policies and definitions vary by insurance company.
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Starting out or renewing, with a policy in hand or not. If something is worth discussing, we’ll call. If not, we’ll say so.