Even the most cautious business owners are susceptible to premise liability claims, which may arise as the result of property damage or injuries that are sustained while someone is on their property. The most frequent litigation comes from customers who slip and fall, so knowing when to get insurance is crucial.
Your extent of liability will depend on the type of visitor who is injured while on your property. If it is someone who was trespassing and had no business being on the premises, it is unlikely that you’ll have to render compensation. A licensee is someone who enters your property who is allowed to be there but hasn’t been invited. An example of this might be a utility worker or delivery person.
Because you didn’t invite them and they may be aware of or caused specific environmental hazards, the compensation they will receive, if any, will be limited. An invitee is someone who you’ve invited onto the property and you’re expected to look after them during their stay and took precautions to warn them of any potential environmental hazards. If they are injured, your extent of liability could be high.
How Does Insurance Help?
CGL or commercial general liability insurance should be possessed by every business entity, large and small. It will protect your organization from property damage, negligence, and injury claims which involve your commercial activities. The essence of the policy is the liability coverage, which is responsible for covering things such as property damage or bodily injury that is connected to the maintenance or ownership of merchant premises.
Most business owners carry some form of liability exposure. A vendor, guest, or client who slips and then falls as the result of a carpet that is turned up or exposed cord may file suit, and by carrying liability coverage you’ll be able to pay their medical expenses along with the legal defense in the event you’re sued for extra damages.
Which Businesses Can Benefit The Most From Liability Insurance?
Supermarkets are a great example of businesses that can benefit from liability insurance, and this is because their premises frequently have floor mats that can cause slips and falls, fallen items, and floors that are wet. This is why many supermarkets take extensive precautions to maintain safety, including the installation of secure shelves, warning signs, and non-slip surfaces.
Still, accidents can and will happen, and even the most minor injuries may result in litigation. Many businessmen and entrepreneurs have found out the hard way that the fees associated with legal defense can be debilitating, forcing some into financial ruin. This is why savvy business owners purchase liability coverage, as it gives them both protection and peace of mind. However, premises liability does have exclusions. For instance, it won’t cover a doctor running their own practice who injures a patient while providing healthcare. Additionally, employees who sustain injuries are also excluded as is property damage such as fire, theft, or vandalism.