Premises Liability Insurance

All business owners, no matter how many precautions they take, can be sued. Liability claims can arise from injuries or property damage that occur on business property, and some of the most common lawsuits against business owners are from customers or guests who slip and fall on the premises. While these incidents happen frequently in grocery and other retail stores, they can happen just about anywhere. Injuries and property damage can occur in parking lots, common areas of apartment buildings, hotel or office lobbies, hallways, and leased office spaces. That's why having premises liability insurance is critical for all businesses.

Fortunately, an independent insurance agent can help you get set up with all the premises liability insurance you need. They'll get you matched to the ideal amount of coverage for your unique business. Until then, here's a breakdown of premises liability insurance and why it's necessary.

What Is Premises Liability Insurance? 

Commercial general liability insurance is an essential part of every complete business insurance policy. This coverage protects you and your business against losses arising from third-party claims of bodily injury or personal property damage related to your business. 

Premises liability coverage is sometimes a part of general liability insurance. This portion of your insurance offers bodily injury and property damage coverage related to the ownership or maintenance of business premises. 

Is Premises Liability Insurance the Same As General Liability Insurance?

Though premises liability coverage is sometimes included in general liability insurance, it's not exactly the same. General liability insurance can cover any incidents of harm done to third parties by a business, including on its premises. 

However, premises liability insurance covers incidents that arise specifically from a business owner's or manager's failure to maintain safe business premises for customers and guests. Unsafe physical conditions of the property can lead to third-party injuries and property damage, such as if a customer gets injured while walking up an unsecured staircase into an office building.

Every business owner has some level of premises liability exposure. Any type of slip, trip, or fall can lead to minor injuries or worse. A customer, vendor, or guest can trip on a turned-up carpet, fall over an exposed cord, or sit on a piece of furniture that you didn’t know was broken. 

Employees can also leave products on the floor in the middle of a store aisle, leading to a customer fall and injury. All of these situations require premises liability coverage to help pay for the injured person’s medical expenses and your legal defense if you are sued for additional damages. 

When Do I Need Premises Liability Insurance?

Businesses need premises liability insurance to protect against losses due to injuries and property damage to third parties caused by all kinds of threats. Some of the most common hazards premises liability insurance can protect against include losses due to the following:

Businesses need premises liability to protect not only customers or clients but also delivery workers, cleaning crews, and suppliers. Basically, anyone who visits your business for any reason must be protected against accidental injuries and personal property damage.

What Is "Duty of Care" Regarding Premises Liability Insurance?

Business owners are legally required to maintain safe business premises for all visitors. This concept is known as "duty of care." Depending on the kind of person who visits your business premises, your level of liability varies. 

The law determines that most visitors to your business fall into one of three categories:

• Invitee: Someone who is invited onto the property (e.g., a customer). Invitees can expect that you have taken reasonable precautions to ensure their safety. 
• Licensee: Someone who is permitted to enter the property but has not been invited (e.g., delivery persons and utility workers). Licensees are aware of certain hazards and cannot expect that the highest level of care is given to their safety. In fact, they may actually contribute to some of the hazards. 
• Trespasser: Someone who is neither invited nor permitted to enter a property. Trespassers (e.g., burglars and vandals) have a very limited assumption of safety. 

Since your business is legally required to maintain the safety of a property, if a visitor is injured, or their property is damaged, you can be held liable to financially compensate the visitor for damages. However, the extent of your liability depends on which category the impacted visitor falls into. If a burglar (i.e., a trespasser) falls through your roof and is injured while attempting to break into your business, you likely won’t have to compensate them for their injuries. 

Trespassers typically don't have the right to press charges against a business for injuries or property damage, with one exception. The exception is children who get injured on a business's premises due to an "attractive" nuisance, even if they were trespassing. "Attractive nuisances" are features on your business's premises that might tempt minors, like trampolines or pools. If your business doesn't make an effort to secure its attractive nuisances and a minor gets injured on one, even if they were trespassing at the time, you can be held liable.

How Much Does Premises Liability Insurance Cost?

The cost of premises liability insurance can vary depending on a few different factors. These can include the size and location of your business, your business's prior claims history, and the inherent risks present on its premises. Working together with an independent insurance agent is a great way to get set up with the most affordable premises liability insurance near you.

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An Independent Insurance Agent Can Help You Find Premises Liability Insurance

Every business owner needs insurance to protect visitors who get injured on their property. Premises liability coverage provides the needed protection. 

Business owners should work with a local independent insurance agent who has experience working with their specific industry. Independent insurance agents can obtain quotes from multiple insurance companies, so you can compare quotes and coverage and find the best business insurance for your needs and budget. And down the road, your agent can help you file business insurance claims or update your policy as necessary.