header-logo header-logo

Home Login E-newsletter About us
20 April 2016 / Sarah Wilkinson
Issue: 7698 / Categories: Features , Insurance surgery , Insurance / reinsurance
printer mail-detail

Insurance surgery: Working under cover

© Copyright LexisNexis 2026. All Rights Reserved.

Sarah Wilkinson examines vicarious liability

Following two recent Supreme Court decisions, employers will be advised to closely review the fine detail of their liability cover. Against the backdrop of the rulings in Cox v Ministry of Justice [2016] UKSC 10, [2016] All ER (D) 25 (Mar) and Mohamud v WM Morrison Supermarkets plc [2016] UKSC 11, [2016] All ER (D) 19 (Mar) it is essential that employers ensure vicarious liability is clearly defined and included in their policy wording to confirm that the policy covers all situations for which a business maybe be held vicariously liable.

The Supreme Court has re-examined the two-stage test for vicarious liability and has provided updated guidance on the development and application of the legal principle. While the court specifically sought not to open the floodgates, it has adopted a more liberal approach to the circumstances when an employer may be vicariously liable for the acts of an employee who has been negligent.

The boundaries have been pushed to allow the doctrine to reflect the realities and complexities

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Read All
Jurit LLP—Caroline Williams

Jurit LLP—Caroline Williams

Private wealth and tax team welcomes cross-border specialist as consultant

HFW—Simon Petch

HFW—Simon Petch

Global shipping practice expands with experienced ship finance partner hire

Freeths—Richard Lockhart

Freeths—Richard Lockhart

Infrastructure specialist joins as partner in Glasgow office

NEWS
Read All
NLJ this week: No such thing as a ‘Welsh seat’
Talk of a reserved ‘Welsh seat’ on the Supreme Court is misplaced. In NLJ this week, Professor Graham Zellick KC explains that the Constitutional Reform Act treats ‘England and Wales’ as one jurisdiction, with no statutory Welsh slot
NLJ this week: Jury reform risks justice for efficiency’s sake
The government’s plan to curb jury trials has sparked ‘jury furore’. Writing in NLJ this week, David Locke, partner at Hill Dickinson, says the rationale is ‘grossly inadequate’
NLJ this week: Crypto fightback offers ‘new frontier for law’
A year after the $1.5bn Bybit heist, crypto fraud is booming—but so is recovery. Writing in NLJ this week, Neil Holloway, founder and CEO of M2 Recovery, warns that scams hit at least $14bn in 2025, fuelled by ‘pig butchering’ cons and AI deepfakes
NLJ this week: Time to revive the duty to report crime?
After Woodcock confirmed no general duty to warn, debate turns to the criminal law. Writing in NLJ this week, Charles Davey of The Barrister Group urges revival of misprision or a modern equivalent
NLJ this week: When are experts truly ‘necessary’?
Family courts are tightening control of expert evidence. Writing in NLJ this week, Dr Chris Pamplin says there is ‘no automatic right’ to call experts; attendance must be ‘necessary in the interests of justice’ under FPR Pt 25
Copyright © 2026 LexisNexis
back-to-top-scroll