If you’re like most business owners, you naturally want to provide a safe and comfortable business environment for your employee, customer, and anyone who visits your property. You may also know that if someone is injured on your property due to unsafe condition, you may be subject to a civil premises liability lawsuit, with potential costly repercussions for your business — but you may not be aware of some of the finer points of premises liability, including what you can do to minimize your chances of being held liable if an injury occurs on your property. Here’s what you need to know about premises liability:
Your Responsibilities as a Business Owner
When you own or lease a commercial property, you are responsible for keeping the premises safe. This includes making sure that all potential hazards are promptly addressed. Common causes of premises liability lawsuits include inadequate lighting, slip and fall event, structural issues, overgrown or improperly maintained landscaping, and even not having enough security.
Financial Consequences of a Lawsuit
Premises liability lawsuits typically have costly financial consequences. If the court rules that your business is at fault, you’ll be required to pay the plaintiff’s medical bills, lost wages if applicable, legal fees, pain and suffering, and other damages. Small-to-medium sized businesses are especially vulnerable because they often don’t have the resources shoulder the heavy payouts involved.
Additionally, even in cases where the court rules in your favor, you’ll still need to spend a lot of money on your defense. Comprehensive liability insurance may help with costs, but not everything will be covered, and repeated claims will increase your premiums over time.
Impact on Reputation and Customer Trust
Because almost everything that passes through the court system becomes a matter of public record, there is no way to keep a premise liability lawsuit quiet, and this can impact the reputation of your business and undermine customer trust. Negative publicity makes potential customers reluctant to visit, particularly if the incident makes them question whether your business is safe.
A business with a history of premises liability claims may also struggle with attracting and retaining employees.
Proactive Steps You Can Take to Prevent Liability
Here’s what you need to know about reducing the risk of a premises liability lawsuit:
- Schedule Regular Inspections: Routine inspections allow you to identify and address possible safety hazards.
- Post Signs and Warnings: Clearly mark all potential hazards such as freshly mopped wet floors and construction zones.
- Implement Security Measures: If your business operates at night or is situated in a location with a high amount of foot traffic, install security cameras, good lighting, and keep all outdoor landscaping well-maintained to minimize slippery leaves and other hazards on walkways. Negligent security measures can make you legally liable if an injury occurs.
- Train Employees Properly: Make sure you train your employees to spot hazards and to take action before anyone gets hurt as well as how to proceed if any injury occurs.
When to Contact Legal Counsel
Contact an experienced premises liability attorney immediately if an accident occurs on your property — even if the person doesn’t appear to be seriously injured. An attorney can guide you through the legal process and help you gain a clear understanding of your rights and responsibilities. Additionally, they can also ensure that your insurance provider has all the applicable documentation and can represent you in court if necessary.
