If you’re hurt on someone else’s property, you may turn to premises liability insurance for compensation.
Premises liability coverage may be an important source of compensation. Our experienced Wilmington premises liability lawyers at Horton & Mendez, Injury & Car Accident Attorneys explain premises liability insurance and what you need to know if you’re hurt.
Defining Premises Liability Insurance
Premises liability insurance is a type of insurance that a property owner or manager has to cover accidents and injuries that occur on their property. The insurance covers when the property owner is at fault because of an unsafe property condition.
Who takes out premises liability insurance?
The property owner, renter, or other party who is responsible for the safe condition of the property takes out premises liability insurance.
What Types of Accidents Does It Cover?
Premises liability may cover a range of accidents and incidents, including:
- Falls from substances on the floor and slippery surfaces
- Unsafe building conditions
- Crowd control incidents, jostling
- Fixtures or furnishings that are sharp or cause injury
- Electrical accidents due to faulty wiring
- Injuries due to unsafe stairs, escalators, or elevators
- Swimming pool incidents
- Animal attacks, dog bites
- Falling objects
- Crime, inadequate security
How Premises Liability Insurance Protects Property Owners
Premises liability insurance protects property owners from a large, unexpected expense due to a legal claim. When someone is hurt because of a dangerous property condition, the amount of compensation is based on the person’s losses. It’s not based on how much the business or person can afford to pay. If the business had to pay the entire amount of a large judgment out of pocket, it could go bankrupt. At a minimum, it could interfere with their operations and profits. Having premises liability insurance protects the property owner from the risk of a lawsuit and a judgment against them.
General liability insurance for business
A business may have broader general liability insurance. General liability can cover many things that a business can be liable for, such as copyright infringement, product liability, libel, slander, and other issues. Premises liability can go along with general liability, but they’re different. General liability is broader coverage.
Does premises liability insurance affect whether a party is liable for an accident on property?
No. Premises liability insurance is available to pay compensation when the property owner is legally responsible. It doesn’t change the standard of care nor affect how the case is evaluated in terms of fault.
Having premises liability insurance may make it easier to resolve a claim, but it doesn’t change whether the property owner has legal liability for what happened.
The Role of Insurance Companies in a Premises Liability Claim
Even though property owners take out premises liability insurance policies to manage their risk, it’s injured victims who may benefit. Without the insurance coverage, the property owner may be unable to pay, even if they are at fault. This may be especially true when the property owner is an individual or a small business.
When you have a premises liability claim, it may feel like the insurance company is more the defendant than the property owner. The insurance company will investigate and assign a representative, and engage an attorney if the case goes to court. The insurance company may extend a settlement offer.
The relationship between the property owner and their own insurance company can become complex during litigation. An important reason to have legal representation is to navigate the complex legal process, including pursuing a claim through insurance.
How Coverage Limits Can Affect Your Compensation
To receive compensation for an injury on someone else’s property, several things must happen. The property owner must be legally liable according to premises liability law. Their negligence must be the cause of your injury and harm. If compensation is awarded by settlement or judgment, you must be able to collect your compensation.
Satisfaction of judgment
For you to receive compensation, the defense must be able to pay it. The defendant paying the plaintiff their compensation is called satisfying the judgment.
Sometimes, the only way for a defendant to satisfy the judgment is through insurance. But the amount that the insurance company will pay is limited to the coverage limit.
Coverage limits and compensation
When the property owner takes out premises liability insurance, they select a policy limit. This is the largest amount the insurance company will pay for a claim. Even if the victim’s damages exceed that amount, the insurance company will only pay up to the policy maximum.
Personal liability
The property owner may be personally liable for amounts above the insurance policy maximum. It may be worthwhile to seek payment from the property owner if they can satisfy the judgment but are underinsured.
Insurance company bad faith
If liability is clear and the insurance company fails to pay, they may be liable for extra damages and attorney’s fees. It’s important to have an attorney representing you to make the appropriate demands on the insurance company and document bad faith if it occurs in your claim.
Steps To Take When Filing a Claim Against Premises Liability Insurance
When filing a premises liability insurance claim, it’s important to:
- Seek immediate medical attention.
- Preserve evidence and take photos of the accident scene.
- Provide sufficient information for the insurance company to process the claim.
- Carefully determine your damages available under the law.
- Never admit fault or apologize.
- Keep records of communication with the insurance company.
- Send a demand letter.
- Don’t wait too long to file a formal complaint, if necessary.
The legal process requires certain steps. A personalized case strategy can be critical to receiving the compensation you deserve. An experienced Wilmington premises liability lawyer can help you with all the steps of your case.
Contact an Experienced Wilmington Premises Liability Lawyer
If you have been hurt on someone else’s property, it’s important to understand premises liability coverage and how it impacts your claim. We invite you to talk to a lawyer at Horton & Mendez, Injury & Car Accident Attorneys. Get legal help today. Call or message us now.
