Changes in Vicarious Liability Law Help Leasing in Ontario

TORONTO -- Leasing associations are applauding a move by the Ontario government to cap vicarious liability for owners of rented or leased vehicles.

The Ontario Ministry of Finance introduced vicarious liability reform legislation on Nov. 2. The proposed law would freeze vicarious liability for owners of rented and leased vehicles at $1 million, and that exposure is also reduced by any amount recovered from the actual operator of the vehicle, whose insurance becomes primary under the proposal.

Ontario is one of a handful of North American jurisdictions with unlimited vicarious liability law, which holds the owner of a vehicle vicariously liable for the actions of the operator of the rented vehicle.