Parents around the world know the worry that comes with raising a teenager. A teen’s lifestyle is fraught with activities that can cause personal injury or property damage to others. What is less frequently contemplated, however, is the risk posed to the parents or guardians themselves.

Parental liability is the legal obligation parents have for the acts of their minor children. Parental liability is not a new concept, but recently the stakes have been raised considerably. Following are some recent headlines:

“Teen poisons classmate with eye drops –Vernon Twp. student got idea from movie scene, officials say”
— New Jersey Star Ledger

“Teens caught ‘sexting’ may avoid prosecution”
— CBS New York.com

“Teenager, parents sued in fatal crash”
— Times-News Magic Valley

Legal interpretations of parental liability
Each state has its own laws regarding parental liability and the related financial responsibilities. Typically the parent could be “vicariously liable” for the acts of their minor children much in the same way that an employer is liable for the acts of its employees. Parents can be held liable even when they had no direct role in the act that led to damages. They also can be sued under the theory of negligent supervision. In this theory, the parent is held accountable if he/she knew or should have known and failed to take the appropriate actions to control their minor children. 

Consider the eye drop incident referenced in the above news headlines. A 15-year-old boy poisoned a classmate by putting eye drops in a sports drink and was consequently sentenced to 60 days in a juvenile detention center. The boy got the idea from a scene in the movie Wedding Crashers. In the movie, a character placed eye drops in the wine glass of a rival, who became violently (and comically) ill. The real life event was significantly more serious. The victim allegedly suffered from a loss of vision and hallucinations, and was hospitalized for three days. 

This particular case is not closed, but here is a very real scenario that could result, particularly if the parents of the perpetrator have significant personal wealth. On top of the criminal charges, the victim may seek damages for his injuries by suing the boy and his parents. Damages could include the cost of medical treatment and his hospital stay. There may be follow-up medical treatment and bills. The victim also may suffer long-term medical problems related to the loss in vision. Claims for emotional distress, humiliation or embarrassment are quite possible as well. Other factors include any school or significant activities that were missed because of this prank. It may eventually be up to a jury to evaluate the victim’s damages and determine a monetary award. The size of the award is hard to say, but jury awards across the country have trended upwards significantly in recent years.

Here is another angle to consider. This incident impacted one victim, but what if the 15-year-old “eye dropped” a punch bowl at the prom or the water jug at baseball practice? It’s easy to envision a situation with numerous victims, all of whom could have sustained the same or even more serious injuries. In that case, the parents could be facing multiple lawsuits.

Identifying prevalent risks
There are several aspects of teen life that increase liability exposure for the parents. The major causes of litigation are noted here, along with accounts of actual incidents:

• Driving
  Parents are all too familiar with the dangers and distractions teens face behind the wheel: youthful inexperience, cell phones, road rage, excessive speed, entertainment and GPS systems, and even the friends sitting beside them. Those with substantial wealth also need to consider the full array of vehicles that kids can access.
  
  For example, a 16-year-old was driving a souped-up golf cart with a friend in the passenger seat. They were heading to the country club located a short distance away in her gated community. While traveling at a fairly fast speed and with the music blaring, the teen made a sudden left turn. Her friend was ejected from the cart, sustained a serious head injury and had to be air-lifted to a nearby hospital. The accident resulted in a seven-figure settlement. 
    
• Social media
  The term “social media” includes Facebook, Twitter, YouTube, blogs, text messages, e-mail and other related outlets. Rants against teachers, school administrators, coaches and peers have gone viral at lightning speed. Teens may not possess the wisdom to realize the true consequences of their actions. While it may feel anonymous or harmless on their end, that is certainly not the case. Victims have sued minors and their parents for claims alleging defamation of character and libel.
  
  In one particular New York lawsuit, the parents of a blogger were sued for negligent supervision for allowing their kids to use a “dangerous instrument.” In this case, the dangerous instrument was a smart phone. Lawsuits involving social media can be expensive and invasive. The defendant’s e-mail and text accounts are discoverable and may have to be produced. The entire household (parents and siblings) all may receive subpoenas to produce e-mails, instant messaging chats and texts.
  
  
• Parties at home
  Even if Mom and Dad warn against it, teenagers often invite their friends over while their parents are away. Regardless of parental consent, if the teens engage in underage drinking or illegal drug use, the parents can be held liable.  
  
  A young man threw a party at his home and it was not until the next morning that one of the partygoers was found nearly unconscious. As a result of an overdose, the 17-year-old was in a coma for approximately four months and suffered significant, permanent brain damage. The parents of the minor who threw the party were sued for leaving their son unsupervised and for failing to ensure that a party with alcohol and controlled substances would not take place while they were away.
  
  
• Other activities
  Accidents happen, and unfortunately even routine activities can pose an unknown risk to parents. In a recent example, two teens were kayaking when the kayak started to take on water and tip over two times. After holding on for some time, the boys decided to swim for shore. When one could no longer continue, the other tried to pull him in but unsuccessfully had to let go and make the swim alone. He made it to shore, but the other drowned.
  
  Not long after the tragedy, the deceased boy’s parents filed a wrongful death lawsuit against the other teen and his parents—the owners of the kayak. They had lost their only child and claimed damages for loss of services, necessities of life, loss of love, companionship and affection.

Useful insurance solutions
The best way to protect personal wealth from liability litigation is by obtaining high limits of excess liability insurance.

The liability coverage included in homeowners, auto and watercraft policies is considered primary insurance; it responds first in the event of a claim. Excess liability insurance responds after primary coverage limits are exceeded. For example, the liability limit within many homeowners policies is $300,000. If someone is injured on your client’s property and awarded damages above that, your client would be personally responsible for the remaining balance, including legal fees. Juries have quite a bit of latitude on damage awards. Sometimes they look to make a statement when compensating victims and punishing wrong-doers—whether they be kids or their parents. 

While insurance can help alleviate the financial burden of a lawsuit, communication can go a long way as well. Parents should regularly talk to their kids about how to conduct themselves at home, on the road and online. There are resources to help parents initiate these conversations. For web-related risk, OnGuardOnline.gov provides practical tips from the federal government and the technology industry. 
 
Inappropriate conduct from kids can expose the entire family to financial risk, and wishful thinking is not a sound financial plan. Addressing this issue with your clients now can preserve family wealth for generations to come.

Peter Piotrowski is Senior Vice President, Claims for the Private Client Group division of Chartis. He has more than 25 years of insurance claims experience managing state, regional and national insurance programs.

Coverage provided by a member company of Chartis Inc. The descriptions contained herein are summaries only. Please see actual policy for full terms, conditions and exclusions. All submissions are subject to underwriting guidelines. Coverage may not be available in all jurisdictions.