Bennett Financial Services

An occupier may be an owner or a tenant of a property who has the legal right to occupy that property.  As an occupier, one is required to keep areas safe for persons who are using them. Some common hazardous conditions include ice and snow, elevation changes and uneven surfaces, slippery surfaces, debris and poor lighting.

This type of liability is very common and results in very costly claims for individuals and businesses. An occupier may be held liable if they fail to provide a reasonable standard of care in keeping the premises free from hazards.  That liability may be shared if there is more than one occupier.

The key concept here is negligence.  Was the occupier negligent in making the premises safe for those who are there?  Determining whether or not the occupier behaved below the standard of reasonable care depends upon the answers to several questions some of which are was the danger foreseeable; was the occupier’s conduct in accordance with acceptable standards of practice; was there an adequate system of inspection; was the inspection carried out; how long was the danger allowed to exist; and how easy could the danger have been prevented?

How can you manage the risk of being an occupier?

Obviously, the best way to avoid liability is by keeping premises free from hazards.  However, claims will occur and it is prudent to demonstrate that you have acted in a manner that was reasonable and free of negligence.  More specifically though, there are several steps that should be taken.

Get the right coverage.  Contact and insurance firm that has some expertise in this area.  Have your agent work with you to draw up a plan to manage your risk in this area.  In the case of shared spaces or multiple occupiers, ensure that the lease agreement clearly states the responsibilities of each party.

Develop effective policy.  Develop and implement an Inspection and Maintenance Policy. Implement an appropriate cleaning and maintenance program. Perform inspections frequently for hazards or maintenance deficiencies.

Train employees and volunteers to identify and fix hazards.  Create a form to document these inspections.  Keep records of inspections, repairs and the state of the premises.  When hazards are discovered, fix them immediately, or post signs and barricade off the area.  Ensure all areas are adequately lit.  Use a non-slip floor treatment.

Establish accident procedures.  Assist the injured person in finding medical treatment. The way in which accidents and incidents are handled can have a significant impact on the ultimate cost of claims.  Record the names and contact information of any witnesses. Obtain and record detailed descriptions of the incident from the victim and witnesses.  Refer any discussions with the claimant to your insurer.  Tell employees and volunteers that they should not discuss liability with potential claimants and that they should never admit liability.  Take pictures of the area where the incident occurred and the injured party.  Complete an incident report.  Immediately, report the incident to your insurer. Investigate potential causes and take steps to prevent similar incidents in the future.

See your insurance agent to ensure that you are managing this risk.