Operating a business comes with a variety of risks, and even the most diligent businesses can face liability claims. General liability insurance is designed to protect against these risks, but understanding the common types of claims and knowing how to prevent them can help reduce the likelihood of costly disputes. Here, we’ll cover 5 common general liability claims and share proactive tips to help you safeguard your business.
Slip-and-Fall Claims
One of the most frequent liability claims is slip-and-fall incidents, which occur when someone is injured due to hazardous conditions on your business premises. This can be anything from a wet floor to an uneven sidewalk, and such claims often lead to medical expenses and lawsuits.
How to Avoid It: Regularly inspect your premises for potential hazards, especially in high-traffic areas. Promptly address any risks, such as wet floors or uneven flooring, and post visible warning signs when immediate action can’t be taken. Training staff to recognize and report these risks can also help prevent slip-and-fall accidents.
Third-Party Property Damage
This type of claim occurs when your business accidentally damages someone else’s property, such as damaging a client’s belongings while working onsite or breaking equipment in a rented space. Even small accidents can lead to hefty compensation costs.
How to Avoid It: When working on someone else’s property, take precautions by training employees on proper handling techniques for equipment and machinery. Consider implementing safety guidelines for off-site work to ensure employees know the risks and exercise caution. Additionally, thorough assessments of tools and equipment before and after use should be conducted to minimize the chance of accidental damage.
Personal and Advertising Injury
Personal and advertising injury claims can result from accusations of defamation, copyright infringement, or misrepresentation in advertising. For example, a business might face a claim if it inadvertently uses copyrighted material in its marketing or makes comparative statements about competitors that are seen as defamatory.
How to Avoid It: Exercise caution with all marketing and advertising materials. Ensure that images, slogans, and other content used are either original or fully licensed. Avoid statements that could be perceived as negative toward competitors, and consult with legal experts if you have questions about the language used in advertisements to avoid unintentional defamation or copyright issues.
Products-Completed Operations Claims
Products-completed operations claims are made when a completed product injures a customer or service your business provided. This type of liability often affects businesses involved in manufacturing, construction, or installation services, where there’s a risk of post-completion issues causing harm.
How to Avoid It: Implement a strict quality control process for all products and services. Conduct regular inspections and testing to ensure that completed work or products meet safety standards. Additionally, maintain comprehensive records of your production and quality control processes to demonstrate that your business took every precaution to ensure safety.
Liquor Liability
Businesses that serve alcohol are at risk for liquor liability claims if a patron causes damage or injury after consuming alcohol on your premises. In many places, businesses can be held partially responsible for incidents that happen as a result of over-serving alcohol to patrons.
How to Avoid It: Train staff to recognize signs of intoxication and establish policies to stop serving alcohol to patrons who appear intoxicated. Additionally, consider offering alternatives, such as non-alcoholic beverages or food, to help moderate alcohol consumption.
General liability claims can be costly, but with proactive risk management and a reliable insurance policy, you can protect your business from financial impact. Bell Black Insurance specializes in helping businesses like yours stay prepared and protected. Contact us today to tailor coverage to your specific needs. Call us at 208-356-9565 to get started.
