What is Premise Liability Insurance?

Published on: 08/24/23 — In  -

Whether you’re a business owner, property owner, or professional practitioner, you want to make sure you’re doing everything in your power to protect yourself from legal liability. This is where premise liability insurance comes in. Premise liability insurance provides additional protection from legal claims that arise out of the ownership or maintenance of property and/or activities conducted on it. It includes the expenses for legal defense and any resulting damages.

If you need assistance with premise liability insurance or are currently facing a liability lawsuit, contact an experienced Chicago premise liability lawyer today for a free consultation at (312) 300-2515!

What is Premise Liability Insurance?

Premises liability is an important concept that businesses and property owners must understand. Premise liability insurance is a type of coverage that protects businesses and property owners from financial losses related to any injuries or damages sustained on their premises. This insurance coverage helps protect the insured from lawsuits filed by visitors who are injured on their property. Coverage includes legal costs associated with defending against such claims, as well as any potential settlement or judgment payments. It also covers any necessary medical expenses incurred by those injured on the premises due to negligence.

The types of claims that may be covered by premises liability coverage often include common slip and fall accidents, escalator accidents, swimming pool accidents, injuries from defective equipment, and poorly maintained fixtures and furnishings.

Chicago premise liability attorney Chris Ktenas

For example, a property owner may have forgotten to hose down their entranceways after their cleaning staff finished mopping it, putting those who walk through at risk of slipping and suffering an injury because of it. If this were the case, then the business owner would be liable for the victim's medical care costs since things weren't kept safe.

Snow and ice also present unique challenges that must be taken into account when assessing possible legal liability, as do inadequate maintenance of the premises and defective conditions like broken windows or falling objects. Having proper insurance coverage for accidents can ensure all such liabilities are taken care of without having to worry about too much financial burden on your end.

Types of Premise Liability Insurance Coverage

To determine which type of premises liability insurance is right for your business, it’s important to consider the risks you face due to your business’s operations and activities. For example, if your business involves children, then you may need more than just basic liability coverage due to the heightened risk of injury or illness that may occur in these settings. Depending on the size of your business and amount of visitors each day, you may need to select a more comprehensive coverage option than other types of businesses. 

When obtaining premise liability insurance, it is vital that you provide accurate information about yourself and your business so that you can be sure your policy will properly cover all potential liabilities. Be sure to read through all terms carefully so that you understand what is covered in case an incident occurs on the property for which you are responsible.

a book titled "Premise Liability" on a desk next to a gavel

It’s important to note that premise liability insurance does not cover intentional acts or criminal activities that lead to injury on a property. Additionally, many policies do not provide coverage for certain activities such as trampoline use or swimming pools. Therefore it’s important to review your policy carefully and speak with your insurer if you are unsure about what is covered under your policy.

Who Needs Premise Liability Insurance?

Premise Liability Insurance is a type of insurance that is essential for property owners, business owners, and professional practitioners as it provides coverage for medical expenses, damages for pain and suffering, court expenses, settlements, and other related costs.

Property Owners

Property owners and occupiers are subject to premises liability law, which outlines their responsibility for visitors on the property. This legal framework sets out specific requirements and duties of care depending on the visitor’s status on the property and whether they were invited or not.

Generally, any visitor that is lawfully present on the premises is owed a duty of care by the owner or occupier. This includes people who visit the property with permission, those who enter without permission (trespassers), and even those who come in with implied consent based upon certain circumstances, such as store customers at a retail establishment.

The person’s status is important as it determines how far the owner/occupier’s legal duties extend to them. For example, social guests who are invited onto someone else's property are owed a higher duty of care compared to trespassers, while customers in a public space can be owed a varying degree of duty of care depending on the circumstances.

Business Owners

Business owners who have premise liability insurance will have coverage for any accidents that occur at the office building or premises. This insurance will provide coverage for accidents that involve individuals such as employees, customers, and visitors to the business premises. Business owners are liable for any injury or accident that happens on the property, so it's important for business owners to have insurance coverage in the case of an accident. 

a premise liability insurance form next to a computer and some money

Professional Practitioners

Premise liability insurance can offer coverage for professional practitioners in case they are faced with claims due to bodily injuries or property damage caused while providing services. Professional practitioners, including doctors, lawyers, and accountants, may be held responsible for their actions when they are found negligent in delivering services or advice. Premise liability insurance can provide assistance in safeguarding practitioners from such claims.

Duties of Care and Reasonable Care for Property Owners and Business Owners

When it comes to premises liability and the duty of care, property owners and business owners have a legal obligation to ensure their premises are safe for visitors. This includes providing safe access paths, maintaining adequate lighting, and taking necessary safety measures such as proper fencing around potentially hazardous areas.

The law divides visitors into three categories: invitees, licensees, and trespassers. Invitees have invited guests on the property for the benefit of the owner; patrons of businesses fall into this category. Licensees are those allowed on or invited onto the property by its possessor but not for his/her benefit. An example would be a family member visiting his/her home without an invitation from the occupant. Finally, trespassers are people who enter or stay without permission or right from an owner or occupier of the land.

The legal responsibility that owners have toward each of these categories varies depending on the knowledge of risks involved with particular activities and dangerous conditions, the provision of warnings about potential hazards, and any attempts to correct existing hazards before injury occurs. Business owners must recognize their responsibilities under “duty of care” when it comes to premises liability in order to avoid liability issues in the event there is an accident or injury on-site caused by a hazard or faulty condition.

What Happens if You Don't Meet Duty of Care Requirements

A duty of care includes making sure any dangerous conditions or activities are avoided, that visitors and staff have the necessary information to remain safe, and that all of the proper security measures are in place. If your business does not meet these obligations, you may very well find yourself facing personal injury lawsuits.

One way for businesses or property owners to protect themselves from this type of liability is to purchase premises liability insurance. This type of coverage can potentially help with court costs associated with defending against personal injury claims, as well as any medical bills and settlements arising from such disputes (up to particular policy limits).


It’s important to pay close attention when you’re selecting an insurance policy for your business—each one is unique and offers different levels of protection, so make sure you understand both the positive aspects and limitations of the coverage each plan provides.

Potential Risks Covered by Premise Liability Insurance

There are several potential risks that are covered by premise liability insurance including property damage claims, bodily injury claims, medical bills for the injured party, and more. For more information on how to file a premise liability claim, contact Ktenas Injury Attorneys!

Property Damage Claims

Premise liability insurance provides financial protection for property owners in the event of property damage caused by another individual. It includes coverage for claims and legal fees associated with property damage caused by employees, visitors, or customers. Additionally, it covers claims related to personal injury or medical expenses resulting from injuries sustained on the premises.

Bodily Injury Claims

Bodily injury claims are frequent in premise liability insurance. This insurance covers injuries that happen on a business or homeowner's property, like slip and fall accidents, animal attacks, or accidents. Property owners can be held responsible for injuries to visitors, customers, employees, or tenants. Premise liability insurance provides protection in case of a bodily injury lawsuit.

Medical Bills and Other Damages from Bodily Injury Claims

Premise liability insurance can safeguard business and property owners against the potential financial losses resulting from injury on their premises. If someone suffers an injury on the property, the insurance will pay for medical bills and other damages resulting from the incident. This coverage is typically included in a general liability policy and helps protect against legal costs associated with lawsuits related to medical costs and damages associated with bodily injury claims.

Call Ktenas Injury Attorneys Today!

Lawsuits can be an incredibly stressful and daunting experience. However, the good news is that you do not have to fight the insurance company’s lawyers on your own. With Ktenas Injury Attorneys, our experienced premises liability lawyers are ready to offer help at any stage of the lawsuit process. They will analyze your case and will help you understand how best to present it in order to get the most out of it – ensuring that you don’t have to take whatever minimal sums that are offered by insurance companies or their lawyers who specialize in minimizing payments. Call Ktenas Injury Attorneys today for a free initial consultation.