As a business owner, you are likely worried about the possibility of any acts of negligence that may result in harm or injury to a visitor or guest to your property, and that is a legitimate concern. If so, your Manhattan premises liability lawyer recommends you get premises liability insurance. Let’s see what this policy is and what it covers.
What Is Premises Liability Insurance?
Premises liability insurance is a policy that covers property owners in case their negligent actions or inactions cause harm or injury to someone on their property. This type of insurance covers the costs of third-party injuries and property damage that could be blamed on the owner’s failure to keep their property reasonably safe for customers, visitors, and guests.
How Do I Decide If My Business Should Be Covered By Premises Liability Insurance?
Whether your business should be insured for premises liability depends on several factors, such as the type of business you run, the level of risk involved, the state laws and regulations that pertain to your type of business, and the terms of your lease or contract. In general, business owners should carry some form of premises liability insurance to protect themselves from potential lawsuits and legal costs if someone gets hurt on their property due to their negligence.
Is Premises Liability Insurance The Same As General Liability Insurance?
Premises liability insurance is not the same as general liability insurance, which covers a broader range of risks, including advertising injuries, product liability, and personal injury. Premises liability insurance also differs from builders’ risk insurance, which covers property damage during construction or renovation projects. You may need more than one type of insurance to fully cover your business needs. Consult with your attorney to make sure your business is appropriately covered by insurance.
However, in the meantime, you need to know that the main difference between premises liability and general liability insurance is the scope of coverage. Premises liability insurance covers only accidents that occur on your business premises, such as slips and falls, dog bites, or falling objects. General liability insurance covers a broader range of risks, including accidents that occur off your premises, such as product liability, personal injury, or advertising injury.
In What Cases Would Premises Liability Kick In? When Does General Liability Come In?
If one of your customers slips on a wet floor in your store and breaks their arm, premises liability insurance would cover the medical expenses and legal fees. However, if a customer gets injured by using your product at home and sues you for negligence, general liability insurance would cover that claim.
Premises liability insurance is usually cheaper than general liability insurance because it has a narrower scope of coverage. However, it may not be enough to protect your business from all the potential liabilities you may face. Depending on the nature of your business, you may need both types of insurance to fully cover your risks. You can consult with an insurance agent or broker to determine the best option for your business that will give you the peace of mind you need to have.
Is There Any Way For Me To Reduce My Business’s Risk?
Besides having sufficient insurance coverage, there are certainly some important steps you can take to reduce your business’s risk. Here are some ideas you may want to consider.
Limit Liability
Aim to limit your personal liability for the obligations and debts of your business. This may be accomplished by selecting a business structure that will separate your personal assets from those that belong to the business. Talk to your attorney to decide whether the business should be established as a corporation or a limited liability company. By taking this step, you can avoid losing your savings should the business face any legal troubles or bankruptcy.
Invest In Training
Having employees that are thoroughly trained to deal with customers, suppliers, vendors, and others is essential when it comes to reducing business risk. By taking the time to give them the necessary skills, resources, and knowledge, you can improve their safety and performance.
Know Your Industry
Trends, regulations, and best practices in your industry may be constantly changing. By knowing your industry’s best practices, you can avoid falling behind your competitors, violating any laws, codes, or standards, or missing out on any opportunities. By being familiar with what is going on in your industry, you can adjust your business plan and adapt accordingly.