What If Someone Gets Injured on My Property?: A Guide to Premises Liability Coverage

Picture this: you just opened up shop for the day. A customer walks in and starts browsing around. Suddenly, you hear a crash and a scream.

You round the corner and find the customer on the ground, clutching his knee. To his right, a stray piece of cardboard that didn’t get picked up during closing last night. The customer swears he’ll sue you for every penny you own, and now you’re in a cold sweat.

While the litigious American looking for a quick dollar is a myth, you as a business owner would still benefit from having premises liability coverage.

What Is Premises Liability Coverage?

Premises liability coverage is a subset of commercial general liability insurance. You may also see it abbreviated as CGL. This coverage helps business owners with their financial responsibility towards customers injured on their premises.

This coverage extends to any incident that happens on your business property which could be construed as due to negligence on your part.

Your workspace is larger than merely your office or storefront. It can also include your parking lot, walkways and gardens, and your workshops or studios, if applicable.

When Am I Held Liable for Injuries?

Sorting out when your business will be held liable for injuries on the premises can be tricky. However, it’s easy to answer this question with a few examples.

Situation 1: A Customer Slips and Falls

The old slip-and-fall case is the bread and butter of personal injury attorneys in the United States. Since the customer is an invitee to your business, you have a presumed responsibility to take all necessary precautions for their safety. If you fail to do so, you’ll be deemed negligent.

Situation 2: The Electrician Falls Off His Ladder

This situation is a bit more tricky to sort out, as the licensee was aware of some potential hazards before entering. As such, they cannot reasonably expect the highest standard of care to apply to their safety. However, if you or one of your employees did something to interfere with their work or cause the accident in question, you might be held liable.

Situation 3: A Robber Injures Themselves

In this situation, you can breathe a sigh of relief, whether you carry premises liability insurance or not. A robber qualifies as a trespasser; someone you neither permitted nor invited to be on your property. As such, you have no obligation to pay for their injuries.

How Can Premises Liability Coverage Save Me?

While most CGL insurance policies have an element of premises liability coverage in them, they won’t offer as much coverage as a dedicated policy. If you don’t carry enough coverage on your policy, you’ll end up getting a visit from someone like this personal injury attorney. They’ll come on behalf of their injured client to collect the damages from you in court.

Looking for More Business Tips?

Hopefully, this guide about premises liability coverage and how it can save your business offers you some insight. If you’re in the market for more business or insurance tips, why not check out the rest f our blog?

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