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Premises liability coverage is a type of insurance that protects the business owner or lessee from injuries and damages sustained by third parties. This form of insurance can be purchased to protect against claims like bodily injury, property damage, personal injury and medical expenses in the case of an accident on your premises.
Premises liability coverage is a type of insurance that covers the risks of property damage, personal injury, and advertising injury. General liability coverage is a type of insurance that covers injuries to people or property caused by a business’s operations. Read more in detail here: premises liability coverage vs general liability.
Premises liability coverage is a kind of insurance that settles claims for incidents that occur on your business’s premises involving visitors. An owner of property is required by law in all jurisdictions to make reasonable measures to ensure that persons who visit the property are entering a safe environment.
To get why premises liability coverage may be required, you must first comprehend the responsibility. The concept of premises responsibility states that a company is liable for keeping its facilities adequately safe for visitors. The firm is liable for injuries and property damage if someone is injured on the premises. This might lead to legal action or accusations against the company. While every state has rules governing premises liability, they may differ in how they define coverage depending on the sort of visitor: invited, licensed, or trespasser.
How Does Premises Liability Work?
The property may be used by both an invitee and a licensed guest. The invitee is often seen as a guest, while the licensee is not invited but is granted entry to the premises. The offer to use the property is legally construed as an explicit assurance that it is secure.
Although a licensee has less protection since they are not invited, they may still expect to remain secure. A licensee is someone who needs access to your property to accomplish their job, such as a delivery person or a utility worker.
Trespassers’ rights are often restricted, and most trespassers are unable to recover damages from the property owner if they are hurt while on the property. In most jurisdictions, however, the property owner must keep the property in good repair and avoid attempting to hurt the trespasser, such as using a trap.
There are several exceptions to the rule, such as when trespassers must be warned of non-obvious risks. This may be a warning sign for something like a swimming pool, which is considered a “attractive nuisance” by kids. In this circumstance, property owners would have a heightened responsibility of care.
As a company owner, it’s critical to research state legislation to properly comprehend your obligation in your state. You may owe a strong responsibility of care and safety to all visitors, even those who are trespassing.
Premises Liability Exposures of Different Kinds
When it comes to premises liability, there are many distinct sorts of risks that a company might face. Exposures may include, but are not limited to, the following:
- Slip-and-fall accidents: Whether the floors are slick as a result of an excellent wax job or because someone spilled water, the company owner is liable.
- Inadequate maintenance: Even something as basic as new bolts for a railing might result in significant injuries and lawsuits.
- Poor security: A company is responsible if it does not have the necessary employees or security systems in place to prevent persons from entering high-risk areas.
- Faulty conditions: If someone sits in a chair that has been proven to be defective and subsequently falls and injures themself, the company is accountable for the injuries.
- Elevator and escalator accidents: For example, if someone fails to exit the escalator in a timely manner and is hurt by the belt feeding back into the system, a company owner might be held accountable.
What is Premises Liability Insurance and How Does It Work?
Premises liability insurance protects business owners from claims originating from injuries or property damage on their premises. Most company owners receive this coverage as part of a general liability insurance, although it may also be bought alone. When acquired separately, the limits are often greater than the limits of a general liability coverage.
Important Premises Liability Coverage Exclusions
Premises liability may not cover all types of injuries or all types of property damage that occur on the premises. There are certain exceptions, such as:
- Professional malpractice: Errors and omissions insurance covers injuries sustained while under the care of a professional, such as a doctor or physical therapist.
- Employee injuries: While workers are entitled to a high level of care, they are not protected by premises liability insurance. Workers’ compensation insurance covers them instead.
- Owned property of the firm: A business must obtain commercial property insurance to cover damages to its own assets.
What Types of Coverage Are Available for Shared Premises?
When a business owner leases a property that is held by another person or entity, premises liability becomes more complicated. The business lease, in general, shifts all obligation to the lessee and away from the lessor. The firm and its consumers, on the other hand, may demand an acceptable level of property safety and upkeep.
In circumstances when the company owner could anticipate a reasonable degree of care, the obligation reverts to the property owner. Because the business owner may not be liable for parking lot care, the property owner assumes responsibility. The same is true for elevators and escalators, which are the building owner’s obligation.
Insurance for General Liability vs. Insurance for Premises Liability
General liability and premises liability insurance are often confused, but they are not the same thing. While premises liability insurance is often included in a general liability policy, general liability insurance covers much more.
Premises liability insurance protects you in the event that your property is not properly maintained and a visitor is injured. General liability insurance provides a greater level of protection, including personal property coverage and claims arising from company activities that take place outside of the office, such as a homeowner tripping over a handyman’s tool bag and injuring themselves.
Is a Standalone Premises Liability Policy Necessary?
If you need more protection for a property that doesn’t have any other responsibilities, a standalone premises liability insurance coverage is an excellent choice. This is most frequent with undeveloped property or land that will be developed and is covered by contractors’ insurance for other general liability claims. A premises liability policy with builders’ risk insurance is one example.
When is it Enough to Have General Liability Insurance?
A general liability insurance coverage that covers premises liability as well as other issues is sufficient for most small company owners. If you believe the general liability limits on your policy are insufficient, you may raise them or get a business umbrella coverage.
Conclusion
As a company owner, it is your responsibility to ensure that your establishment is a secure place to visit. You are not only liable for damage claims that occur on your property, but you may also face legal action if shady individuals file false claims. This is where premises liability insurance comes in handy: it protects you from both legitimate and fraudulent claims.
Consult the experts at CommercialInsurance.net if you’re wondering if you require premises liability insurance. They’ll assess your company’s risk and match you with one of their 200+ insurance partners to provide you the best coverage at the cheapest price. No one makes obtaining insurance any simpler.
CommercialInsurance.net is a website dedicated to commercial insurance.
Products liability coverage is a type of insurance that protects the owner of a product from claims for personal injury or property damage caused by the product. It covers both manufacturing defects and design flaws. Reference: products liability coverage.
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