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Employer's liability is the legal responsibility of an employer to pay damages to an employee who suffers a work-related injury or illness, which can often result in an expensive lawsuit. Your employer's liability insurance can help offset those legal costs, as well as any settlement.
Under a legal doctrine sometimes referred to as "respondeat superior" (Latin for "Let the superior answer"), an employer is legally responsible for the actions of its employees. However, this rule applies only if the employee is acting within the course and scope of employment.
By virtue of the laws relating to immunity and indemnification, employees generally have no individual liability except in those circumstances where the employee was acting manifestly outside the scope of his or her employment responsibilities or with malicious purpose, in bad faith, or in a wanton or reckless manner.
One example: A piece of a ceiling in the workplace falls and hits a worker, and they file suit against their company in its dual capacity as employer and as the premises owner.
Respondeat superior embodies the general rule that an employer is responsible for the negligent acts or omissions of its employees. Under respondeat superior an employer is liable for the negligent act or omission of any employee acting within the course and scope of his employment (1).