Nature of the Liability Exposure
Risk Management for Enterprises and Individuals (open textbook), section 12.02
Edition and licensing notes
Publisher. LibreTexts Business (biz.libretexts.org), from the open textbook of the University of Minnesota Libraries / Saylor (Baranoff, Brockett and Kahane)
Edition. CC BY-NC-SA 3.0 open textbook, ca. 2009-2012; page as served 2026-09-29
Status. Creative Commons Attribution-NonCommercial-ShareAlike 3.0 (LibreTexts / University of Minnesota Libraries).
What this document is
Risk Management for Enterprises and Individuals (open textbook), section 12.02: Nature of the Liability Exposure is a reference published by LibreTexts Business (biz.libretexts.org), from the open textbook of the University of Minnesota Libraries / Saylor (Baranoff, Brockett and Kahane). It is one of the documents that insurance license exam questions are written from, including property & casualty practice questions. This page summarizes it and points to the official version, which is the text to rely on.
Sections cited in practice questions
Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.
- Risk Management for Enterprises and Individuals, section 12.2, "Nature of the Liability Exposure"
“That is, if you have property or engage in an activity that is considered ultra-dangerous to others, you may become liable on the basis of strict liability without regard to fault.”
- Risk Management for Enterprises and Individuals, section 12.2, "Nature of the Liability Exposure" (vicarious liability)
“Vicarious liability will not, however, shield the wrongdoer from liability. It merely adds a second potentially liable party. The employer and employee in this case may both be liable.”
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