Running a business is a big responsibility.
In fact, one of the biggest responsibilities is making sure nobody gets hurt while they are on your property.
Every year, thousands of businesses all over the country are dealing with premises liability claims that could have easily been avoided. The reality is that most people that own businesses don’t understand their legal obligations until it is too late for them.
The problem is, without proper safety protocols and legal knowledge, one injury can destroy your business.
Lawsuits are expensive. Reputations take years to rebuild.
But it doesn’t have to be this way.
In This Article:
- What Are Business Legal Duties and Responsibilities in Personal Injury?
- Why Premises Liability Matters for Any Business
- The Elements of a Personal Injury Claim
- Common Personal Injury Hazards in Business Settings
- How Businesses Can Protect Themselves
What Are Business Legal Duties and Responsibilities in Personal Injury?
Businesses have a legal responsibility to maintain safe premises for everyone that enters their property.
This is known as premises liability.
This means that if a business owner does not take reasonable care to prevent injury to people on their property, they can be held legally liable if someone is hurt.
Personal injury law holds accountable any person or business that created the dangerous conditions. Or, the dangerous conditions existed and the person or business knew about it, but didn’t take reasonable steps to correct the condition. This can be a range of issues, from slippery floors and uneven stairs, to low lighting and insufficient security measures.
Business service cases like this are what law firms such as Ravid & Associates deal with on a day to day basis. Guiding clients who have been injured through the complicated legal process.
The numbers are mind boggling…
OSHA’s 2024 data reveals that U.S. employers alone reported approximately 1.5 million nonfatal injury and illness cases in one year. That’s a lot of lawsuits waiting to happen.
Why Premises Liability Matters for Any Business
One of the biggest things that business owners often don’t understand…
The type of visitor who is on their property will play a big role in determining what the business is responsible for doing to keep them safe. And this differs based on their legal status.
Courts typically look at three categories when considering liability.
Invitees are owed the greatest amount of care by a business owner. This includes customers, clients, or anyone else that enters the property for the purposes of conducting business. A business owner must take active steps to inspect for dangerous conditions and correct them right away.
Licensees are individuals that have permission to be on the property, such as social guests and vendors. A reasonable amount of care is still owed. But there is no duty to inspect for hazards that the owner is not aware of.
Trespassers have no legal right to be on someone’s property. This is the lowest level of protection afforded by the law. But even in this case, a business owner is not allowed to lay traps or intentionally cause harm to a trespasser.
The retail industry accounts for the majority of these types of cases. Slip and fall accidents make up the most common type of claim in this arena. Which is what makes the facts of these cases become even more important to prove in order to win a settlement.
And the reason that this becomes even more of a serious problem…
The Institute for Legal Reform reported that small businesses account for a whopping $160 billion in lawsuit costs per year. A burden that often falls hardest on the smaller businesses that often lack the financial means to properly defend themselves.
The Elements of a Personal Injury Claim
To hold a business liable for a personal injury, there are four elements that must be present in a personal injury case. Proving any of these elements can leave business owners vulnerable to legal action.
Duty of Care
The injured party must be able to prove that the defendant owed them a duty of care. This duty generally exists for most visitors to the property as soon as they step on to the property.
Breach of Duty
The next element is that the business failed to meet the standard of care. This could be from ignoring a spill, not repairing broken equipment, or a failure to provide appropriate security.
Causation
The breach must be directly responsible for the injury. A wet floor is irrelevant if the plaintiff slipped on something else.
Damages
Lastly, the plaintiff must have suffered some form of damages as a result of the accident. Medical bills, lost wages, pain and suffering, and other factors will contribute to a personal injury claim.
Here is a fact that most people don’t realize…
The Bureau of Justice Statistics report that plaintiffs only win about 39% of premises liability trials. When you take into account out of court settlements, around 70% of people that file personal injury claims end up receiving some type of compensation.
Common Personal Injury Hazards in Business Settings
Smart business owners will always know where the hazards are in their place of business. Here are some of the most common injuries that occur in a business setting that can lead to premises liability lawsuits.
Slip and Fall Hazards
Wet floors are the number one hazard every single year. Spills, freshly mopped floors without proper warning signage, and other forms of moisture from inclement weather near entrances are the leading causes of slip and fall injuries.
Poor Maintenance
This can include broken stairs, loose railings, cracked sidewalks and pavements, and malfunctioning elevators. Regular inspections will be able to fix the issue before someone is hurt.
Inadequate Lighting
Parking lots, stairwells, and other dark areas that are prone to causing accidents and are also likely to be targeted for criminal activity.
Security
Businesses that are in certain areas will have a higher standard to meet when it comes to providing reasonable security measures to keep people safe. Failing to do so can result in a business being held liable for an assault that takes place on their property.
How Businesses Can Protect Themselves
The good news is, most personal injury claims are preventable.
The process starts by creating a culture of safety in the workplace. Train employees to identify potential hazards and report them. Document everything. Keep a record of all inspections, repairs, and incident reports.
Insurance is another important part of a business being able to fully protect themselves. General liability insurance can cover the cost of most premises liability cases. But be sure that the limits of the policy match the actual level of risk associated with a particular business.
The key points that all businesses should take include:
- Regular safety inspections of all areas of the property
- Removal of hazards or proper warning signs being placed
- Training of all employees in safety protocols
- Documentation of all maintenance and incidents
- Annual review of insurance coverage
And this is where warning signage can make all the difference. Visible warning signs about wet floors, construction zones, or any other hazards that are present on the property. Showing that the business took reasonable steps to warn visitors.
Wrapping It Up
Personal injury laws exist for a reason. They are there to protect everyone.
But it can also be used as a guide for business owners to follow.
Learning about these legal obligations is not just about trying to avoid a lawsuit. It is about creating a safe environment for all people that enter your business.
To quickly recap:
- All businesses have a duty of care to visitors based on their status as a visitor
- Premises liability can occur for hazards on the property
- Injuries are 100% preventable with the proper safety measures
- Documentation and insurance are key methods of protecting a business
The businesses that are most successful are the ones that take safety seriously from the start. They don’t wait for an accident to occur before taking steps to improve safety. The most successful businesses create a system that prevents accidents from happening in the first place.
That is the mentality that can keep your business out of the courtroom and your customers coming back.
