What Is Premises Liability Insurance?

Both property owners and non-owner residents have a duty of care to those who visit their premises. For businesses, this duty includes ensuring the safety of customers, utility workers, delivery company staff and others who frequent their property. However, while they may do everything in their power to properly maintain their place of business, mistakes can happen. A general commercial liability policy will provide some coverage for third party property damage and injuries, but premises liability insurance can offer additional protection.

What Is Covered?

When an organization is held legally responsible for episodes of third party bodily injury or property damage occurring at their place of business, premises liability coverage will pay the associated costs. Most policies will cover:

  • Legal bills
  • Medical costs
  • Lost wages
  • Death benefits
  • Pain and suffering damages

It is important to note these policies also apply to incidents in outside areas like parking lots, surrounding land or gardens.

What Is Excluded?

Nonetheless, premises liability insurance does not provide protection against every instance of injury or property damage. For example, a policy will not protect against employee injuries. It also will not cover damage to a business’s own property, as this is typically addressed by commercial property insurance.

Bodily injury and property damage claims can be expensive. Investing in premises liability insurance can save a business both time and money.