Premises liability lawsuits are on the rise and no business is immune. The most common lawsuits involve “slip and fall” accidents. The most common cause is spilled liquids or other materials that fall on the floor where someone can trip or slip on them. Slip and fall accidents occur primarily in supermarkets and retail establishments, but they can occur anywhere, such as shopping mall parking lots, apartment complex courtyards, hotel lobbies and hallways, for example. In addition to slip and falls, your small business is liable for accidents resulting from fire, falling objects, dangerous equipment, and even assaults that take place on your business premises. Premises liability insurance, typically part of a commercial general liability policy, is your first line of defense.
Some premises liability lawsuits are legitimate, but many are frivolous or even fraudulent. Insurance companies and their defense attorneys are trained to spot fake ones, and the cost of investigation and defense is part of your commercial liability insurance coverage. But you can and should take steps to prevent accidents and avoid being targeted.
Most states require you, as the business owner, to exercise reasonable care to protect customers and visitors from injury by keeping your property in a safe condition. In general, you cannot be expected to protect people from dangers that are obvious, hidden, or unknown. But, and it’s a big but, a plaintiff’s attorney can effectively argue that the danger wasn’t so obvious, or a jury can decide that you should have been aware of the hidden danger. That’s where reasonable care comes in. This is what you can do.
- Write a maintenance procedure that includes a routine schedule to check for hazards and defects that could cause an accident. Keep a written record when something is repaired or replaced. This can help show that you are conscientious.
- Train your managers and employees to be on the lookout for potential hazards. Make sure they know the policy for reporting a problem, fixing it if possible, and alerting customers to avoid it until it’s fixed.
- Install security cameras where feasible and post conspicuous notices that the cameras are in place. Knowing that they are being recorded could discourage scammers.
- Make sure parking areas, driveways, hallways, and hallways are well lit.
- Review your commercial liability insurance periodically. As your business grows, consider increasing your commercial liability coverage.
