- You could (almost) never be too careful...
Owning a business means accepting some level of risk. You put your time and money into the venture, and there’s no guarantee it will work out. If your business has a property open to the public, you also have the risk of premises liability.
Premises liability lawsuits are the claims that arise if a person is injured on your property. As the owner or manager of the property, you must provide a reasonably safe environment for customers and visitors. If you fail in that responsibility and someone is injured, you could be subject to a lawsuit.
Since these lawsuits can be expensive, it is in a business owner’s best interest to work toward preventing them. A little prevention may also limit your liability if an accident occurs on the premises.
In this post, we will cover steps business owners can take to protect against premises liability claims.
Perform a Risk Assessment
The first step to reducing liability is to perform a risk assessment on the property. Start by considering all areas employees, customers, and visitors can access. Walk the property inside and out to identify and catalog any risks. Once you have a list of hazards, develop plans to address them.
Beyond general things like looking for tripping hazards and sharp objects, consider risks that may be unique to your business operations. For example, a fitness center may have unique risks that are not relevant to something like a clothing store.
Inspections and Maintenance
Business owners should also perform regular property inspections to prevent hazards. Conduct routine walk-throughs of the interior and exterior spaces, looking for common issues like cracked sidewalks, loose handrails, and poor lighting. Promptly address hazards once you identify them. It might also help to create an inspection checklist to ensure you don’t miss anything. Having a record of inspections can also help if you are subject to a claim. You should also have plans to keep up on routine maintenance to prevent hazards before they occur.
Post Warning Signs for Hazards
Some hazards might take time to address. In that case, you should post warning signs so people see the hazard, know the risk, and avoid it. One common example is a wet floor. Since the water will take time to dry, you should post a sign to warn customers. Another example is if a maintenance team is working on a ladder. You might want to post a sign for falling objects and block the area off.
Regardless of the hazard, it is important to post the sign in a highly visible location so people see it. Use bold colors and universally recognizable symbols for different hazards. If you can, position the sign so people can’t access the hazardous area without moving the warning sign. For long-term hazards, inspect the signs regularly to make sure no one moved them.
Update and Enhance Your Security
Security is another potential concern for premises liability claims. Installing a security system and surveillance cameras can be smart measures to secure the premises. Ensure areas like walkways, alleys, and parking spaces have sufficient lighting. Some businesses may also need access control systems or security personnel. A victim could still file a claim even if the crime is committed by someone not associated with the company.
According to a Broward County victim advocate, “Business owners can be held liable for crimes at their properties. The questions concern their duty of care and whether they were in some way negligent. For example, if it can be shown that they didn’t take reasonable precautions to prevent or deter crime, there could be the potential for liability.”
Clean and Remove Clutter
Keeping your business clean and free of clutter is vital to preventing accidents that could lead to liability claims. Don’t leave items on floors, in walkways, or near entrances. Leaving items on the floor could create a tripping hazard. Ensure items on shelves are properly stacked and stable to reduce the risk of falling objects. Establish a cleaning schedule and encourage staff to address spills or messes immediately.
Prioritize Fire Safety
Fire prevention and safety are crucial for protecting against premises liability claims. Make sure your property has the necessary smoke alarms and fire extinguishers. Some businesses may also need sprinkler systems. Place extinguishers in easily accessible locations and regularly test fire alarms.
It is also vital to have emergency plans for the possibility of a fire. Mark all exits and ensure escape routes are free from obstructions. Train employees on fire safety procedures, such as operating extinguishers and following evacuation routes. You might also want to hold the occasional refresher course on fire safety to remind employees of exit routes and procedures.
Clear Ice and Snow
If your business is in a place with cold winters, you must prepare for clearing snow and ice. Promptly shovel sidewalks after it snows. Clear any steps, entrances, or other areas people may walk. You should also apply salt and sand to melt ice and provide traction. If you have a parking lot, have it cleared and treated. You should also place mats by entrances to absorb moisture and keep floors in the property dry.
With these tips, you can reduce the risk of premises liability claims. Beyond taking these steps, you should also consider your insurance needs. Having adequate insurance can make a big difference if someone files a claim.