Is a corporation liable for things its employees do on the job?

Yes. Under the common law doctrine of vicarious liability, a corporation is generally responsible for wrongful acts committed by its employees in the course of their employment. If an employee negligently injures someone or damages property while performing their job duties, the corporation — not just the employee — can be held liable.

This is true whether the corporation is large or small. An incorporated plumbing business is vicariously liable for its plumber's on-the-job negligence just as a large corporation is liable for its employees. The liability flows to the corporation itself, not to the shareholder — which is one reason the corporate structure matters. If a sole proprietor's worker causes the same damage, the sole proprietor is personally exposed.

Ontario employers must carry appropriate insurance, including commercial general liability (CGL) insurance and, for businesses with employees, workplace safety and insurance (WSIB) coverage in most sectors. Insurance is a separate layer of protection from the corporate structure itself.

Directors and officers can sometimes be personally liable for corporate acts — particularly where legislation specifically imposes personal liability (environmental offences, certain employment standards violations, health and safety breaches). Corporate structure does not shield individuals from their own direct wrongful conduct.