What is referred to as "Deep Pockets Liability"?

Deep Pockets Liability refers to the legal principle that seeks to hold financially stable entities or individuals accountable for damages due to their capacity to pay. In this context, the term frequently relates to situations where an agency or organization is deemed responsible for an injury or damage caused by one of its employees or through its operations. This concept is particularly relevant when the agency has substantial financial resources, making them a more viable target for plaintiffs seeking compensation.

This principle stems from the idea that entities with more substantial financial means can provide better compensation for victims, regardless of the individual actions that led to the injury. Therefore, when an agency has policies or practices that contribute to an injury, it can be held liable, especially if it has the financial stability to cover the damages. The other choices do not encapsulate the essence of “Deep Pockets Liability” as well, as they focus on aspects that either do not relate directly to the financial capacity of the liable party or are too narrow in scope to reflect the broader legal context of liability associated with significant financial resources.