Can Businesses Be Sued for Wrongful Death Caused by Their Employees?

March 16, 2025

Can Businesses Be Sued for Wrongful Death Caused by Their Employees?

Yes, businesses can be sued for wrongful death caused by their employees under specific legal principles. Liability typically arises through vicarious liability or corporate negligence. Here’s how it works:

1. Vicarious Liability

Businesses may be held responsible for an employee’s actions if the employee was acting within the scope of their employment when the wrongful death occurred. For example:

Work-related accidents: If an employee causes a fatal crash while driving a company vehicle for job duties, the employer is likely liable.

Negligent supervision: Employers who fail to address known risks (e.g., an employee’s history of reckless behavior) may face liability if that employee’s actions result in death.

Key requirement: The employee must have been performing work-related tasks at the time of the incident.

2. Corporate Negligence

Businesses can also be directly liable for their own negligence, even if an employee’s actions contributed to the death. Examples include:

Failure to provide safety training or equipment: Employers who disregard safety protocols (e.g., inadequate training for hazardous jobs) may be liable if an employee’s negligence leads to a fatal accident.

Ignoring workplace hazards: Allowing unsafe conditions (e.g., faulty machinery, toxic exposure) can lead to liability if an employee’s actions or inaction result in death.

Defective products: Companies that release unsafe products may face wrongful death claims if those products cause fatalities.

3. Intentional Acts by Employees

While employers are generally not liable for employees’ intentional crimes (e.g., assault), exceptions exist:

Employer knowledge: If the employer knew an employee posed a risk (e.g., a history of violence) and failed to act, they may be liable for wrongful death.

Workplace retaliation: Employers who encourage or tolerate harassment/bullying that escalates to violence may face liability.

Compensation and Legal Process

Damages: Families may recover medical expenses, lost income, funeral costs, and non-economic losses (e.g., loss of companionship).

Insurance coverage: Corporate policies often provide higher compensation limits than individual insurance, increasing recovery potential.

Statute of limitations: Varies by state (e.g., 1 year in Tennessee, 2 years in North Carolina).

Why Legal Guidance Matters

Navigating corporate liability requires expertise. An attorney can:

Identify all liable parties: Including employees, employers, and third parties (e.g., equipment manufacturers).

Negotiate with insurers: Corporate policies often involve complex negotiations.

Litigate if necessary: Prepare evidence (e.g., safety records, employment contracts) for trial.

If you need help with a wrongful death claim involving an employee’s actions, contact Hall & Dixon for professional support. Their attorneys specialize in securing justice for grieving families.

Read: The Role of Insurance in North Carolina Wrongful Death Claims