6 Points Agents Should Know About Premises Liability
It seems that everywhere you look, someone is getting sued for something.
On top of all the normal concerns that accompany course of construction, expensive lawsuits due to owner negligence on job sites can add even more stress.
To ensure you’re ready to present the right options to your construction clients and protect your E&O, we interviewed US Assure’s underwriting manager, Diane Burdorf, about slip-and-fall coverage.
Here are six things you should know about premises liability insurance.
1. What premises liability covers
Also known as slip-and-fall coverage, the premises liability product available through US Assure pays direct damage for medical aid to an injured party. The injury must arise out of owner negligence when undergoing new construction or remodeling at a residential or commercial vacant property.
This coverage will also cover the defense of the insured should a lawsuit arise. It’s important to note: the injured party could be a vendor, an invited guest or even a trespasser, and the property owner will still be liable for any injuries due to negligence during construction.
2. What sets premises liability apart from general liability and owner / contractor protective
Unlike premises liability — which is only for property owners and covers injuries due to negligence — general liability offers specific protection against third-party lawsuits and covered claims for bodily injury and property damage arising out of business operations. Coverage may also be available for personal and advertising injury.
Owners and contractors protective liability offers a project owner coverage for bodily injury or property damage arising from job site operations that a designated contractor performed for them.
3. Who buys premises liability coverage
Clients eligible for slip-and-fall coverage are residential (1-4 family units per building) and commercial property owners. The policy must be written in their name. Projects that may be covered are completely vacant new construction or remodeling projects. Check out state availability on our product page.
Ineligible risks include:
- Occupied properties — property must be vacant
- Residential land in excess of five acres; commercial land in excess of 10 acres
- Properties with more than four units on its premises
- Coverage is excluded for swimming pools, ponds, lakes, trampolines and swing sets in most states
- Fuel tanks or property formerly containing underground fuel tanks
- Pollution exposures of any kind
- Property with any business or farming conducted on premises
4. When should you should secure premises liability insurance
Often, the best time to secure a premises liability policy is in conjunction with builders risk insurance.
If you know a homeowner is building or remodeling an unoccupied residence, discuss the risk they face should accidents happen on that job site due to negligence.
Similarly, for a business owner with a commercial structure under construction, even a loose step could lead to a site visitor throwing out their back and suing for the cost of medical treatment.
5. How premises liability complements course of construction coverage
The Builders Risk Plan insured by Zurich does not include slip-and-fall coverage. However, our separate and standalone premises liability policy is designed to supplement that scope. Download our guide for three scenarios when you should pitch the two policies together.
6. What you need to know when quoting premises liability insurance
Our premises liability product is insured by Diamond State / Global Indemnity, an “A” rated carrier, and coverage is available nationwide with exception to AK and HI.
After logging in to usassure.com, following these instructions to ensure you have the best quoting experience. Should you need help, contact our team at (800) 800 – 3907.
That’s it! Armed with this information, you’ll have the tools you need to discuss the product with your client, protect their interests and safeguard your E&O.
This is intended as a general description of certain types of insurance and services available to qualified customers. Any description of policy provisions is meant to give a broad overview of coverages and does not revise or amend a policy. Refer to the policy coverage form for a complete representation of the scope of coverage, terms, conditions, exclusions and more. The policy is the contract that specifically and fully describes your coverage. Some products may not be available in all states and may only be offered on a non-admitted basis. Product availability is subject to change.
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