Premises Liability Insurance (Quotes, Cost & Coverage)
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Frequently Asked Questions About
Premises Liability Insurance
How much does commercial insurance cost?
Costs can vary widely based on industry and are also determined by zip code and often payroll and/or gross sales. Request a free quote to get an exact number.
What kind of business insurance do I need?
Most business owners need General Liability Insurance at the very least. If you have any non-owner employees, you will need workers compensation insurance too.
What is a Certificate of Insurance?
A Certificate of Insurance is proof of coverage. It lists the type and amount of liability coverage you have and other policy information when a third party requests it.
Is business insurance tax deductible?
Yes. you can deduct the cost of commercial insurance premiums. The IRS considers insurance a cost of doing business as long it benefits the business & serves a business purpose.
Premises Liability Insurance
Premises Liability Insurance. In contemporary society, property owners usually take many precautions to minimize liability. In spite of this, owners still face the risk of liability claims against them. That's why it's important to have premises liability insurance coverage. This insurance often protects the premises owner from claims such as injury and property damage, which occur within the premises. Slip and fall is the most common claim.
In the majority of the cases, claims usually originate from disgruntled customers or guests who are injured on the property. Even though the premises liability insurance is essential to property owners, it is imperative to understand that it has its limitations. This article discusses the scope the premises liability insurance, policy limits, and situations that the policy does not cover.
Premises liability insurance is crucial to protect your business from slip-and-fall and other injuries at your location. Learn how this coverage can shield your business from large bodily injury claims.
Scope of Premises Liability Insurance
Premises liability insurance is coverage provided to pay for the for costs that may arise from property destruction or personal injury (i.e. slip-and-fall) that occurs on your premises. The law stipulates that a premises owners are expected to provide reasonable safety and precaution to guests and licensees. This implies that the property owner is liable for any loss of property or personal injury that affects individuals who have been legally permitted to enter the premises. For example, the property owner is liable to pay for claims of a guest or customer who slips and fall in their premises. Trespassers have a very limited claim and may be compensated if they prove negligence on the part of the owner.
Even though the premises liability covers for damages and injury to legal visitors, it is important to understand that not all incidences of property loss or injury are covered. For instance, a physician in a hospital who injures a patient is not covered under the property owners’ premises liability coverage. Instead, the physician requires a professional liability insurance to cover for such injury.
Apart from this, it is also important to understand that if you lease space in a building, you have to acquire a premises liability insurance for the space leased. The landlord will not be liable for slip and fall or other accidents or loss of property that occur within your leased premises. However, if an injury occurs outside the leased space, like in the stairs or lobby, then the landlord will be liable.
Premises Liability Insurance Policy Limits
Different insurers offer different terms. Most insurers usually offer a lower and upper limit of for liability. Although most property owner attempt to obtain policies that cover the majority of the claims, there exists a likelihood of the claim exceeding the upper limit an insurer provides. In case the claim goes beyond the stipulated policy limit, the property owner is usually liable for the excess expenses - unless the purchase an excess liability policy (umbrella) that extends coverage above the base policy limits.
Therefore, when choosing your premises liability insurance, it is important to assess, compare, and contrast the different policies on offer in the market. Industry experts and advisors suggest that property owners should work with experienced commercial agents. These agents would provide professional guidance based on risk assessment as well as their experience in the market.
Sometimes the leaser or owner may have premises liability insurance, but the insurer refuses to pay for claims. One of the reasons that an insurance company may refuse to pay is negligence or recklessness. If the owner does not take care of his property and refuses to put any precautionary measures, the insurer does not have to pay. The property owner owes a duty of care to his invitees and licensees in order to validate any claims that arise within the property.
In cases where the owner is strictly liable for the injury or property damage, the insurer would refuse to pay. Therefore, property owners should always ensure that their actions are not inherently harmful to visitors, guests, and other people within the premises. Dangerous actions such as storing harmful chemicals where customers can access qualify as strict liability, and the insurance company would not pay a claim.
The Bottom Line
The modern society has placed various obligations on property owners in a bid to ensure the safety of invitees, licensees, and trespassers. Property owners are required to cover for any loss of property or injury that occurs on their premises. For this reason, many take premises liability insurance, which protects them from property damage and injury within their premises. Prior to obtaining a premises liability coverage, owners have to understand that they owe a duty of care to people in their premises. As such, incidences of negligence or recklessness should be avoided for the insurers to pay for liability claims.
Request a free General Liability Insurance quote in California, Delaware, Kentucky, New Jersey, New York, Pennsylvania and Texas. Also see Commercial General Liability Insurance, Commercial Insurance Premium Financing, Directors and Officers Liability, Do I Need Insurance As A Subcontractor?, Does My Business Need Commercial Flood Insurance?, Fire Legal Liability Insurance, General Liability Class Codes For Commercial Insurance, General Liability Insurance Coverage, General Liability Insurance FAQ, How Does General Liability Insurance Work?, How Much Does General Liability Insurance Cost?, How Much Is Insurance For Contractors?, How Will Artificial Intelligence Change Commercial Insurance?, Liability Insurance, Premises Liability, Understanding Primary And Non-Contributory Liability Insurance, What Is A Waiver Of Subrogation?, What Is An Additional Insured Endorsement?, What Is Business Interruption Insurance?, What Is Excess And Surplus Lines Insurance?, What Is General Liability Insurance?
Quotes from leading small business insurance carriers including: ACE, AmTrust, Chubb, Cincinnati, CNA, Colony, Employers, Evanston, Foremost, Guard, Hanover, Hiscox, Liberty Mutual, Markel, Nationwide, Penn America, Philadelphia, Progressive, Scottsdale, The Hartford, Travelers, USLI, Western World, Zurich & others.