Best Practices for Preventing Premises Liability Claims

Any business that owns or occupies commercial property generally has a legal duty under applicable law to keep the premises in good condition and, in turn, reasonably safe for visitors. Failure to do so could pose significant premises liability concerns and related claims. Such claims, which primarily involve a third party getting injured while visiting a commercial property, may stem from a number of factors, including unsafe walking surfaces, poor maintenance, insufficient lighting or security failures.

In any case, premises liability claims can lead to complex litigation, lasting reputational damage, and considerable financial challenges for impacted businesses. Even relatively minor injuries can result in tens of thousands of dollars in claims costs, including legal fees, medical expenses and settlements. At the same time, severe incidents can prompt six- or seven-figure losses. Nevertheless, many of these claims are preventable through adequate property maintenance and safety controls.

With this in mind, it’s critical for businesses to assess their premises liability exposures and take steps to minimize them. This article explains the main components of premises liability claims, outlines common hazards that may lead to such claims and offers top prevention strategies.

Main Components of Premises Liability Claims

Premises liability applies to all rental properties, office buildings, retail stores, public venues and other types of commercial buildings or spaces under a business’s management or control. This form of liability requires the owner or occupier of the property to uphold the duty of care, which means they must take reasonable action to identify and correct hazards found on the premises, or—when hazards cannot be remedied—warn visitors of these dangers.

Although specific legal standards vary by jurisdiction, for a premises liability claim to be substantiated, it typically requires ample demonstration of four key components:

1. The presence of a hazardous condition on-site
2. Evidence that the owner or occupier of the property knew or should have known about this condition
3. A failure to correct the condition or warn visitors about it
4. Third-party damages that result from the condition

For example, suppose a retail store has an uneven step at its front entrance, posing a trip hazard. If the store owner fails to fix the step or place clear signage at the entrance warning visitors of the hazard (e.g., a “Watch Your Step” sticker) and a customer trips and sprains their ankle on this step, the owner could face a premises liability claim for the customer’s injury.

Common Premises Liability Hazards

Slips, trips, and falls account for the majority of premises liability claims. These claims generally stem from the following property hazards:

• Wet or slick floors due to recent spills, leaks, wax applications or cleaning tasks (e.g., mopping)
• Cluttered or otherwise obstructed walkways or stairways
• Uneven or damaged surfaces (e.g., crooked steps, missing tiles, loose carpeting, cracked concrete or potholes)
• Poor lighting or missing warning signage
• Weather-related issues (e.g., slippery entryways from ice and snow buildup or inefficient drainage systems during heavy rain)

Besides slip, trip and fall claims, premises liability incidents could also arise from other injuries caused by inadequate property maintenance, such as worn or broken office fixtures or furniture. Additionally, these claims may result from ineffective security measures, in which a visitor is harmed by another third party on-site due to a failure to deter or properly respond to criminal activity.

Premises Liability Prevention Strategies

There are several low-cost strategies businesses can implement to limit their premises liability exposures and avoid major claims. Here are some best practices to consider:

• Establish a slip, trip and fall prevention program. Having a formal program in place can help businesses clearly identify their specific slip, trip and fall risks on-site and remedy them before they cause injuries and related premises liability claims. Key topics to address in this program include:
• Maintaining safe flooring and stairs
• Adopting proper spill and leak prevention tactics and swift response protocols
• Ensuring adequate lighting and visibility (especially in areas with uneven surfaces)
• Promoting sufficient housekeeping measures and obstruction controls (particularly in hallways, stairways and entryways)
• Posting appropriate warning signage and safety labels in potentially hazardous areas
• Upholding effective landscaping and snow and ice removal practices
• Ensure adequate property maintenance. Businesses should keep various elements of their premises on routine cleaning and maintenance schedules, including all walking surfaces, furniture and fixtures. Worn, broken or otherwise damaged property should be repaired by qualified professionals as quickly as possible. It may be beneficial for businesses to form strong relationships with multiple contractors to ensure prompt repairs.
• Implement effective security measures. To help deter criminals and prevent them from harming visitors on the premises, businesses can equip their properties with a range of security features. Such features may include security cameras, alarm systems, motion sensor lights, and multiple access controls at sensitive entry points or protected areas (e.g., key fobs or passcodes in addition to traditional locking mechanisms). Having security cameras on-site may also help businesses prevent fraudulent or exaggerated premises liability claims by offering documented evidence of alleged injuries.
• Foster a culture of safety. Businesses should instill a culture of safety among their employees by providing regular training on common premises liability hazards and associated prevention measures. Employees should understand their specific role in maintaining a safe environment for visitors and preventing potential injuries. Furthermore, employees should be encouraged to speak up if they notice any dangerous conditions or unaddressed hazards on-site, thus allowing for quick remediation.
• Maintain proper documentation. By documenting premises liability prevention strategies and creating in-depth response plans for different scenarios, businesses can demonstrate systemic hazard management and better defend against unsubstantiated claims, especially those alleging negligence or failure to act.

Conclusion      

Premises liability claims can pose serious consequences for any business. Fortunately, implementing effective prevention and response measures can make all the difference in keeping these claims at bay. Furthermore, having formal plans in place for managing premises liability exposures can help businesses demonstrate their overall commitment to safety and secure better coverage pricing and terms from insurers. Businesses can consult trusted insurance professionals to review their unique premises liability risks and coverage needs. Contact us today for more risk management tips and coverage resources.

Article Published By: Zywave, Inc.