Mandatory Insurance Shifts Liability Costs, Impacts Precaution Levels
Delegated control systems like vicarious liability, secondary liability, and mandatory insurance help hold accountable those who cause harm but can't pay for it. These systems pass the responsibility for monitoring injurers to others, which can be costly. The cost of monitoring is borne by different parties, affecting how much precaution is taken to prevent harm. Different liability rules influence who pays for monitoring and how much precaution is taken. This helps explain why certain legal systems link specific liability standards with delegated control mechanisms.