Home Business Things You Should Know About Premises Liability If You Are a Business...

Things You Should Know About Premises Liability If You Are a Business Owner

Things You Should Know About Premises Liability If You Are A Business Owner
Photo by Nico Smit on Unsplash

Running a business is a challenging task. Statistics show that around 50% of businesses fail to succeed within five years. There are an ample number of reasons which cause business failure. Unfortunately, the blame for an unsuccessful business falls on the person who starts it. While such failure results from poor management, other reasons are also responsible for business falls. Some business owners never give importance to premises liability. They may ignore learning about this area, but this factor can also result in closing the door of your business. 

What is premises liability?

Any persons entering your company premises are at risk of injury and can claim that because of such injuries come under premises liability. If the injury has happened because of the owner’s negligence in taking care of the premises, they must pay for the damage and injury. 

There are various forms of injuries. It can be a slip-and-fall accident, falling because of unsecured objects, or an accident because of a dangerous obstacle. Business is also responsible for accidents due to maintenance issues and machinery. For businesses that deal with customers’ information, losing such information will put them in trouble. In all the above cases, companies will end up compensating the individuals. 

Slip and fall accidents

It is the most obvious accident which can happen in your company. Sometimes your employees can fail if there is no fault of the company. However, as the incident has happened on your premises, your company will still be responsible for providing the compensation. 

Sometimes your employees may claim for the slip and fall incident and will try to blame your business for the damages. They may hire an attorney to get help in such circumstances. For example, if your business is in Modesto, these employees would hire Modesto premises liability lawyers to get help. You can also hire an attorney to defend your company from false claims as a business owner. While hiring an attorney, you must hire one who knows the rules and regulations of your location, as different states have different rules.

Premises Liability Insurance

For businesses, insurance is the only option to deal with such claims. Like any other insurance policy, premises liability insurance can pay for any claim filed in the event of an accident. But there are some limitations of such premises liability policies, as the insurance company may or may not be liable for all the claims. Your business should have proper planning to deal with such claims which are not covered so that your business doesn’t go into red because of such issues. 

Learn the laws

The most common problem businesses face is that they are unaware of the applicable laws. These laws vary as per the state. Businesses should understand the laws applicable in the particular state to fight properly in case of any issues. Many businesses run in multiple states, so business owners should know the rules of each state separately. 

The major unseen damage of premises liability

Apart from the compensation, your business may see another unseen damage: the impact on your brand reputation. Reputation damage will not demand any money from you, but the damage caused will be costlier than the compensation you will pay. Successful business owners consider all such factors and how to handle such situations. Businesses need to consider even the finest details, which can cause them harm. 

How to avoid premises liability claims

Below are some best practices which you must follow to avoid such claims on your company:

  • Inspect your property regularly: Check the unsafe conditions of your property regularly. It may include anything from a wet floor with mopping to a rolled-up rug and broken steps on a staircase.
  • Resolve the issue: Be prompt and correct the unsafe conditions which are either discovered or suspected.
  • Warn guests: If it is impossible to correct the unsafe condition immediately, then ensure the presence of proper signs at that place. For instance, you can block the staircase until it gets repaired. 

Bottom Line

Ultimately, companies are responsible for each employee or customer who enters the premises. The burden will still fall on your shoulders if the building is on lease or rent.

Featured Photo by Nico Smit on Unsplash