Are there any circumstances that took place on your business premises and wondered, “what is premises liability insurance coverage?” The coverage of the premises liability insurance only includes the accidents that occurred on your business property. This business property could be an area where you work and own.
Even if you just rent the property, it is still included in your business premises and will hold you responsible when an accident happens in that area.
There are various types of liability insurance, and one type is the premises liability insurance that helps you protect the welfare of those who are within your business property. Such circumstances that occur within your business property are unavoidable, and premises liability insurance provides you peace of mind about the costly insurance claims by the injured person. Continue reading as we discuss with you more facts about the coverage of premises liability insurance.
Facts About Premises Liability Insurance Coverage
Whether you own or rent a business property, whenever people step in on your premises, you take liability for whatever risks may occur to them. So, it is necessary to take premises liability insurance to ensure that something will help you cover a claim of injury. With that, here are four facts on what is premises liability insurance coverage.
Fact #1. Coverage
As mentioned previously, the premises liability insurance covers your business property from any accidents that occur. In other words, this kind of liability insurance protects you from any responsibility for an accidental injury that happened within your premises. However, if the accident that occurred was intentional, it will not be covered by the premises liability insurance because you will be held accountable for what happened.
Such accidents that may occur on your guests, such as a client, delivery man, or simply a visitor, unintentionally on your business property will always hold you responsible for that. This is because their injury occurred within your business premises, so it is necessary to have premises liability insurance to cover up for fees you have to pay for the injured person. Moreover, it is essential to keep in mind that if an accident occurs on your premises, you will have liability for it, no matter if you own or rent the property.
Fact #2. Kind of property
The kind of property you are in is one of the factors you need to consider for the premises liability insurance coverage. For instance, the business property mentioned in the insurance policy includes the areas you work in, particularly your office, workspace, studio, parking lot, and the space around it. Furthermore, the liability differs on what kind of property you use, whether it is owned, rented, or shared.
You will be responsible for all possible accidents in the area if you own the business property. Also, when you rent the business property, you still hold liability for whatever may happen there, but only in the region, which you have discussed with the property owner. However, if you share the property, you will not be responsible for the accidents in common areas such as pathways, hallways, and entrance areas; instead, it will be the owner’s liability.
Fact #3. Group of people
Sometimes, your liability in personal injury claims depends on their purpose and what kind of people they are. For instance, there are three groups of people that may come to your premises: invitees, licensees, and trespassers. It is essential to have premises liability insurance when you have invitees or licensees in your premises to help you get covered for the possible fees needed if ever they got harmed while in your property. Meanwhile, if ever a trespasser comes across your property and got injured, you will hold no responsibility for any injuries they got.
Fact #4. The difference with general liability insurance
As a policyholder of the insurance, you must have known two types of liability insurance, the premises, and general liability insurance. These types of liability insurance protect you and your business from any responsibilities whenever something happens within the property. They differ from each other, especially with their coverage for the expenses.
Also, general liability insurance is a package that overlaps with the premises liability insurance.
General liability insurance covers the expenses for bodily injuries and property damage of the third party that occurred within your business property. It also protects your business from any claims from the injured individual or property damage. Moreover, if you have both kinds of liability insurance, they could cover up the medical fees of the injured. However, please note that premises liability insurance alone covers a higher amount of expenses than general liability insurance.
Final Words
And those are the four facts on what is premises liability insurance coverage. Always keep in mind that whenever you own, rent, or share a business property, taking premises liability insurance is essential to help you cover the expenses of an injured person within your premises.
Lastly, there are some factors that you need to consider, especially when learning about the coverage of the premises liability insurance, so choose and settle your insurance policy wisely. For additional information read what is insurance retention. Did you enjoy reading? You may check out what are industrial insurance. Thank you for reading!