Have there ever been events on your commercial property that left you wondering, “what does premises liability insurance cover?” Only injuries sustained on your property are covered by your premises liability policy. This commercial space has the potential to become your permanent workplace.
Though an accident occurs on the property, even if you only rent it, you are still liable because it is part of your business’s premises.
One sort of liability insurance that can assist safeguard customers and employees while they’re on your property is called “premises liability insurance.” Premises liability insurance protects you from having to pay out of pocket if an accident like this happens on your commercial site. Read on as we delve deeper into the specifics of what is and isn’t covered by premises liability policies.
What is premises liability?
When someone is injured on someone else’s property because of a hazardous situation, the owner or operator of that property may be held liable under the law.
Slip-and-fall accidents, equipment malfunctions, fires, and malicious acts are all examples of what may fall under this category. Premises liability insurance, which is like a general liability coverage, might pay for repairs after an occurrence like this.
If an accident occurs on the premises of your company or on the property of a client or customer, the business’s premises liability insurance will pay for the medical bills and repair bills associated with those incidents. It can not, however, protect against harm caused by advertisements.
Similar to premises liability coverage, general liability insurance will pay for medical bills and other expenses if someone is hurt on your property or while they are visiting your property. It will also pay for medical bills and other expenses if someone is hurt because of your advertisements. In the event that you are sued for libel, slander, or copyright infringement due to an advertisement or piece of published information, such as on your company’s website or social media, advertising injury insurance can help safeguard your finances.
When do I need premises liability insurance?
If you own or lease a building to do business out of, you should contact an insurance agent immediately to discuss purchasing premises liability coverage. Any time someone is hurt, they might sue you, and even if you’re found not liable, you’d still have to pay for legal representation and any compensation awarded to the injured party.
Whether you rent or own your business property, premises liability law requires you to maintain a safe environment for visitors and to avoid an unreasonable risk of harm. A “premises liability” claim could result from your failure to do so.
Premises liability legislation mandates that business owners and landlords keep their properties reasonably safe for customers and clients. If you don’t, you may be held “vicariously liable” for any injuries that occur on the premises.
- Injuries and assaults due to lax security.
- A company closed because of snow and ice on the parking lot.
- Damaged flooring, stairs, and walkways.
- Accidents on Elevators and Escalators.
- Dropped advertisements or stock.
- Cords for the extension sofa are concealed.
- True or false: dogs do bite.
What does a premises liability insurance cover?
Subject to the terms and circumstances of the policy, bodily injury liability (such as an injury sustained due to a fall in a parking lot) is normally covered under the commercial general liability coverage.
These sections of your general liability policy should provide the bulk of your coverage for premises liability:
Claims for injuries to people or damage to their property will be covered by general liability insurance. Any financial loss must be attributable to careless management or upkeep of the property.
Regardless of who is at blame, medical bills can be paid for by the policy’s “Medical Payments” provision. If someone besides an employee is injured on your property or in the course of your business, this insurance will pay for their medical bills. Limits on coverage for medical expenses are typically listed on insurance policies’ declaration pages. Typically, the amount charged per individual ranges from $5,000 to $15,000.
It is important for business owners to know that trespassers are often not covered by medical payment coverage. Policy terms, conditions, limits, and applicable exclusions must all be considered before deciding whether or not to pay a claim.
How does duty of care apply to premises liability claims?
The “duty of care” notion establishes a legal requirement for individuals and organizations to avoid putting others in danger, to operate competently, and to avoid undertaking risksy endeavors that are outside their skill set.
The notion is analogous to that of “ordinary care,” which refers to the customary practices of your industry, and the “standard of care,” which mandates that property and business owners take reasonable precautions to ensure that visitors to their premises do not sustain accidents.
If you are a landowner, licensee, or tenant and you fail to offer a reasonably safe environment, an injured person may sue you for their medical bills, lost earnings, and other damages.
To win premises liability lawsuits, a personal injury lawyer has to prove that:
- You should have either fixed the issue or posted a warning for customers or employees.
Facts About Premises Liability Insurance Coverage
Whether you own or rent a commercial property, you are responsible for the safety of everyone entering the building. Therefore, premises liability insurance should be obtained to safeguard against the possibility of financial ruin in the event of an injury claim. Here are four details about this type of insurance to clear things up.
Fact #1. Coverage
As was previously indicated, should anything happen on your business property, premises liability insurance will pay for the damages. This type of liability insurance shields you from legal action brought against you as a result of injuries sustained on your property. However, the premises liability insurance policy would not protect you from legal responsibility if the accident was caused on purpose.
If a customer, delivery person, or casual visitor is injured on your business premises due to a circumstance beyond your control, you will be held accountable. Since the accident happened on your property, you will need premises liability insurance to cover the costs associated with treating the injured party. Furthermore, remember that whether you own or rent the property, you are responsible for any damages that occur on it.
Fact #2. Kind of property
One of the considerations for the premises liability insurance policy is the type of property you are on. Your office, workspace, studio, parking lot, and the land around them are all considered part of the “commercial property” covered by your insurance policy. In addition, the level of responsibility varies depending on whether the harmed property is owned, rented, or shared.
If you own the commercial property, you are fully liable for any and all incidents that may occur there. In addition, if something were to happen on the rented commercial property, you would still be held liable, but only within the geographic area you and the owner have agreed upon. However, the owner will be liable for any injuries sustained on shared sections of the property, such as walkways, lobbies, and entryways.
Fact #3. Group of people
Your responsibility in the event of a personal injury claim may fluctuate based on the nature of the plaintiff and the nature of the incident. Invitees, licensees, and trespassers are the three categories of visitors to your property. When you have guests or licensees on your property, you need premises liability insurance to protect yourself from financial ruin in the event that someone is injured there. Meanwhile, you won’t be responsible for any medical bills incurred by any trespassers who hurt themselves on your property.
Fact #4. The difference with general liability insurance
You, as the insurance policyholder, are expected to be familiar with both premises liability insurance and general liability insurance. When something unfortunate occurs on the property, you and your company will be protected from financial loss thanks to this sort of liability insurance. Their expenditure coverage is where they most diverge from one another.
The scope of both premises liability insurance and general liability insurance can overlap.
The costs associated with a third party’s bodily injury or property damage that occurred on your commercial property are covered by your general liability insurance policy. It safeguards your company against any legal action brought by the damaged party or their property. Furthermore, having two types of liability insurance may help pay for harmed parties’ medical bills. However, please be aware that the liability protection provided by premises insurance alone exceeds that of general liability insurance.
What about trespassers, and what’s an attractive nuisance?
A trespasser has a very low chance of succeeding in a liability lawsuit. Legally speaking, trespassers have no right to expect the owner of a property or business to use reasonable care when they are on the premises.
The only time this rule would be broken is if the property owner knew that children were likely to trespass on the property because of a “attractive nuisance.”
A swimming pool, trampoline, amusement park, heavy piece of equipment, deadly animal, or even a readily accessible rooftop could all qualify as an enticing nuisance.
If you do nothing to safeguard the property and keep children away, you expose yourself to a greater risk of responsibility. Remember that a damaged gate or lack of fencing could also be considered a “attractive nuisance.”
Examples of Premises Liability Claims
1. Slip and Fall in a Retail Establishment – Retail establishments rely heavily on client foot traffic for revenue generation. A customer trips and falls on an item that has fallen off the shelf, and you don’t even realize it happened. The client sustains a concussion and ends up spending $16,000 on treatment.
Two, you have done everything in your power to ensure the safety of your property as a landlord and are thus not liable for any damages that may occur on the premises. Fire sprinklers have been recently installed in your building for protection against fire. The fire sprinklers in your building broke, damaging or destroying $100,000 worth of your tenant’s stuff.
The Third Option: Relying On Freelancers or Subcontractors to Meet Your Business Needs You own a business that relies on freelance workers or subcontractors to complete client projects. In many cases, they come to you because they know you are a convenient location for conducting business. When one of your freelancers takes a seat in an office chair, that’s time off for everyone else. They are knocked out of their seat and break an arm as a result. Given that independent contractors do not qualify for workers’ compensation, any medical costs over $5,000 incurred as a result of an accident on your property will be covered by your premises liability policy.
Tips for reducing premises liability accidents
Business owners should follow proper procedures by checking their properties for hazards and fixing them if necessary. To put it another way, this will aid in avoiding injuries altogether.
Warning signs or markers should be posted to draw attention to flaws or potentially harmful conditions if they cannot be remedied promptly.
Get in touch with a lawyer in your area to learn more about the specific responsibilities of landowners in your state.
These are the four main points to remember about premises liability insurance. Whether you own, rent, or lease a commercial property, it is imperative that you obtain premises liability insurance to assist pay for medical bills incurred by a customer who is hurt on the property.
Finally, before settling on an insurance policy, it’s important to take a few things into account, most notably the details of the premises liability insurance. See what is insurance retention if you want to learn more. Did you enjoy what you read? Find out more about business insurance by reading this. You’ve been really patient in reading this whole thing; I appreciate it.