What does "premises liability" refer to in commercial insurance?

Premises liability refers specifically to the responsibility of a business to maintain safe conditions on its property and to ensure that visitors, customers, or employees are not exposed to unreasonable risks of injury. This concept encompasses a wide range of scenarios, such as slip-and-fall accidents, inadequate security leading to assaults, or injuries caused by poorly maintained property.

In the context of commercial insurance, premises liability coverage protects businesses from claims arising out of injuries sustained on their premises. This can include incidents that occur in areas such as parking lots, lobbies, and other publicly accessible spaces. The obligation of business owners is to act as a reasonable person would to take precautions and remedy harmful conditions that could lead to accidents. This type of liability is crucial because it highlights the importance of safety and due diligence in managing business properties effectively.