Premises Liability and Small Business Owners

Business owners are responsible for injuries on their property due to unsafe conditions. The classic example of a premises liability claim is a store owner who fails to remove a slippery substance from the floor, causing a customer to slip and fall.

Talk to a premises liability lawyer for advice if you own a small business and want help with injury claims.

Legal Responsibilities of Business Owners

Premises liability is a legal duty to keep property reasonably safe for all visitors, including customers and employees. Property owners, including small business owners, must take reasonable action to eliminate dangerous conditions on their property. This includes:

• Repairing cracks in sidewalks
• Placing signs to warn of slippery floors
• Removing ice and snow from parking lots

Suppose you don’t make your small business property safe for others, and harm occurs. In that case, you may be liable for injuries and damages if there’s enough evidence to prove duty of care, negligence, injuries, and causation.

The duty of care involves taking reasonable steps to identify and correct hazards that could cause injury. For example, store owners must regularly inspect their property for hazards, such as broken steps. They must address these issues promptly.

Property owner liability laws vary based on the type of visitor. Different types of visitors require different levels of care under the law:

• Invitees, including customers, are owed the highest duty of care—they’re on the premises for business purposes. Business owners must take proactive steps to keep the premises safe. They must warn invitees of any known hazards.
• Licensees, such as contractors, also have a right to a safe environment. However, business owners owe them slightly less care than invitees.
• Trespassers generally aren’t owed a duty of care unless they are children, though some jurisdictions impose a duty to avoid willful or wanton harm to adult trespassers.

A property owner can also be liable if they fail to follow safety regulations and building codes. Non-compliance can result in fines and penalties. It’s also used as evidence in lawsuits.

Common Risks for Small Business

Premises liability for small businesses covers a wide range of situations where a person is injured because of unsafe conditions. Examples include:

• A slip and fall on a wet floor in a retail or grocery store
• Escalator and elevator accidents
• Falling signs or merchandise
• Snow and ice in a parking lot
• Inadequate security that leads to injury
• Uneven flooring
• Dog bites

Identifying potential hazards protects customers, employees, and, in the long run, your business.

Mitigating Premises Liability Risks

Small business owners can reduce their risk of premises liability in several different ways.

Business owners should promptly eliminate dangerous conditions and potential hazards. If someone identifies a hazard, you must fix it or provide adequate warnings as soon as possible. Some legal experts consider signage key to reducing risks.

Get rid of clutter. A lawsuit can result if a customer or employee injures themselves because of clutter.

Property maintenance is important. Keep records of maintenance, repairs, and safety inspections. You can use this information in a premises liability case to show that you took steps to keep the premises reasonably safe.

Handling Premises Liability Claims

Small business owners should respond promptly to accidents. Your first step should be calling for emergency medical assistance if needed. A prompt and compassionate response helps the injured party and demonstrates your commitment to safety. However, don’t admit fault or say anything the other side can use against you.

Also, document the accident. Thorough documentation is vital for handling premises liability claims. Immediately after an incident, gather and record as much information as possible. Include names and contact information of the injured party and witnesses. Take photos of the area. Create a detailed account of what happened.

You should also reserve surveillance footage. If you have surveillance cameras, make sure to save footage that shows the incident.

Promptly inform your insurance provider about any incident that could lead to a claim. Most general liability insurance policies require businesses to report incidents within a specific time frame.

If the injured party files a claim, let them know that you take the accident seriously and that your insurance and legal professionals will handle it. After the accident, take time to review what caused the accident and the steps to prevent similar issues in the future.

Role of Insurance in Premises Liability

Business insurance covers most slip-and-fall accidents. Suppose a business owner has taken reasonable precautions to keep the property safe and protect their customers from injury. In that case, the insurance policy should cover the claimant’s medical bills.

General liability insurance covers most forms of basic insurance claims. It pays for medical expenses and lost wages in a slip and fall claim.

Commercial property insurance covers property damage, workers’ compensation, personal liability, and product liability.

Talk to a premises liability lawyer for advice on the premises liability coverage that works best for your needs and budget.

Importance of Legal Advice

For small businesses, legal advice on premises liability is a valuable investment for many reasons. A lawyer can advise you on your premises liability responsibilities under local and state laws.

With legal counsel, you can develop protocols for hazard identification, safety training, and incident response. A premises liability lawyer can review your business liability coverage to ensure you have adequate coverage for your business needs.

If you’re facing a claim, a lawyer can advise you on your options and represent your interests.

Need Legal Help?

If you’re a small business owner, you should discuss property liability with an experienced premises liability lawyer. A lawyer will advise you on your business’s legal exposure and options for minimizing risk.