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Professional employees' exposure to risk of negligence claims from the client

Author

Listed:
  • Ronald William Craig
  • Wilson C. Barnes

Abstract

Construction professionals owe duties of care and skill to clients in both contract and tort. Usually the principal or the corporate employer takes responsibility for employees' negligence under the principle of vicarious liability. But analysis of court judgments from England, New Zealand, Hong Kong and Florida (USA) reveals circumstances in which professional employees might attract personal liability to the firm's client, despite an apparent lack of contractual or tortious relationship with that client. Professional employees of unincorporated businesses might be more exposed to this risk than employees of incorporated businesses. Factors causing professional employees to be uninsured include lack of contractual privity between client and employee and absence of compelling rules or statutes. Professional employees seem unaware of these risks. Increased awareness of these risks could encourage employees to take out insurance but clients will resist paying twice to insure the negligence of both principal and employee.

Suggested Citation

  • Ronald William Craig & Wilson C. Barnes, 2007. "Professional employees' exposure to risk of negligence claims from the client," Construction Management and Economics, Taylor & Francis Journals, vol. 25(7), pages 811-819.
    • Handle: RePEc:taf:conmgt:v:25:y:2007:i:7:p:811-819
    DOI: 10.1080/01446190600987712
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