A customer is injured on your business premises: Are you protected?
As a business manager or owner, you know the importance of maintaining good relationships with your customers. However, things can take an unfortunate turn if a customer is injured on your premises. What if they sued for damages? Would your business be protected in the event of a claim or lawsuit? The answer is yes—as long as you hold business liability insurance.
More on civil liability for businesses
Any entrepreneur starting a business needs insurance to protect against business property loss and civil liability. But what exactly does civil liability insurance do? In a nutshell, it protects your business against claims or lawsuits brought by a third party as a result of personal injury or property damage. It covers your business’s activities, products, and places of operation, as well as expenses incurred in the event of a claim, as per the terms of your policy.
Civil liability is based on the notion that all individuals and businesses have a duty to conduct themselves appropriately and not cause harm to others. Civil liability comes into play when a business fails to fulfill that duty, in which case it’s responsible for compensating the harm caused to another person through its own fault.
Business liability insurance will cover the legal costs of defending your business if it is subject to legal action by an injured party and will compensate the party if your business is held liable for the damages the party suffered, provided the loss is covered by your policy.
That said, it is in you and your business’s best interest to understand that the liability of your business—and by extension the compensation it will be required to pay to the injured party—depends on three conditions that must be verified and recognized:
- Fault by the business
- Injury
- Existence of a causal link between the fault and the harm suffered.
Customer injuries: More common than you might think
Accidents can happen anywhere, anytime—and your place of business is no exception. Here are a few scenarios that could give rise to liability for your company if a customer is injured at your business premises:
- A client visits your office, slips on a patch of ice you failed to deal with outside your entrance, and fractures their shin. A few weeks later, you receive a demand letter seeking compensation for the damage they suffered as a result of the fracture.
- A customer falls after stumbling on the sill at the entrance to your store, breaking their wrist and glasses. They claim the cost of a new pair of glasses along with medical expenses incurred due to the injury.
- A patron at your gym gets hurt on one of your fitness machines. They file a claim for loss of income due to their injuries.
- A customer at your grocery store slips and falls on a wet floor, breaking a leg. They take legal action for loss of income due to the injury.
- An object falls on a customer’s head during a visit to your warehouse.
- A person is injured by a tool, scaffolding or a product while work is being done at your client’s home.
As you can see, there is no shortage of ways customers or clients may suffer injuries you could be held liable for, whether at your place of business or a client’s residence. That’s why business liability insurance is essential. It’s the only way to protect yourself financially from liability claims or lawsuits that could have a major impact on your business—and even its survival.
Business liability insurance: Protection you can’t afford to do without
A customer injury at your business premises is just one example of a liability risk for your company. Other risks include damage to a customer’s property or unintentional damage to a supplier’s property by one of your employees, to name but a few possible scenarios.
Civil liability coverage is a must for dealing with the financial impact such situations can have on your business. So how do you ensure your business has the necessary protection? Simple: by purchasing business insurance from a property and casualty insurance representative.
Business insurance for business with peace of mind
There are lots of other business risks aside from those associated with civil liability. That’s why business insurance offers a range of complementary business coverage options in addition to third-party liability. These options include coverage for:
- Property (buildings, equipment and goods) against losses such as fire, theft and water damage
- Operating losses
- Crime
- Equipment breakdown
- Company vehicles
- Cyber risks
- And more
So remember: regardless of the size of your business, business insurance is essential to help you manage risk and keep your operations running in the event of a third-party claim or loss. Promutuel Insurance offers coverage combinations tailored to your company’s needs and line of business to make your life easier. To protect your business in the event of a claim or loss, contact your property and casualty insurance representative. They will help you choose the right coverage for your requirements so you can enjoy the peace of mind you need to succeed!
