Premises Liability

What Does Premises Liability Mean?

Premises liability refers to a landowner or resident being held responsible for an injury that occurs on their property. During legal proceedings for such incidents, the court may evaluate either the status of the injured party or the safety conditions of the property.

Insuranceopedia Explains Premises Liability

Premises liability doesn’t only affect the property owner; it can also apply to a tenant renting the property, such as an apartment renter, if a third party is involved. Most renters insurance policies include personal liability coverage that pays for these claims, so tenants who skip coverage can end up paying out of pocket if a guest gets hurt in the unit.

Laws vary by state. A state may evaluate the status of the injured party and dismiss any claims made by a trespasser (someone unauthorized to be on the property).

The law may also evaluate the property owner or tenant responsible for maintaining safety standards. Failure to make the property safe or to warn of unsafe conditions can result in liability. For homeowners, this type of claim is usually paid out through the personal liability section of their policy, which is one reason to compare coverage limits when shopping for the best homeowners insurance. Businesses face the same risk with their customers and typically carry general liability insurance to cover medical bills and legal costs after an on-site injury.

In some cases, responsibility may be shared between the injured party and the property owner or tenant under a comparative fault system. The state will assess the degree of negligence for each party and assign compensation or penalties accordingly.