Business Insurance

Premises Liability

Premises liability holds property owners and occupiers responsible for keeping their premises safe and covers injury claims arising from hazardous conditions.

Last reviewed: May 2026 · Editorial methodology

Definition

Premises liability is the legal obligation of a business owner or property occupier to maintain reasonably safe conditions, and premises liability insurance pays for claims when someone is injured due to a hazard on the property. Slip-and-fall accidents are the most common premises liability claim and are covered under the general liability policy's premises and operations coverage. Restaurants, retail stores, and gyms face significant premises exposure — a grocery chain might settle a slip-and-fall claim for $50,000–$300,000 depending on severity and jurisdiction. The duty of care owed varies by the visitor's legal status: invitees (customers) receive the highest duty, licensees (social guests) a moderate duty, and trespassers generally a minimal duty under most state laws, though exceptions exist for child trespassers under the attractive nuisance doctrine. Property owners who lease space to tenants remain co-liable for common areas, making landlord premises liability an important consideration alongside tenant GL. Snow and ice removal obligations in northern states are a frequent source of premises liability claims during winter months.

Where this term matters

Business Insurance →/business/general-liability →/business/restaurant-insurance →Landlord Insurance →

Tip

Glossary definitions are educational. Always check your own policy language — insurers can define common terms differently from one another. When in doubt, request a written explanation from your agent.

Related terms

General Liability InsuranceGeneral liability insurance is the foundational business policy covering lawsuits from customers, vendors, or bystanders injured on your premises or by your operations.Business Owner's Policy (BOP)A BOP packages general liability and commercial property insurance into one affordable policy, designed specifically for small to mid-sized businesses.Additional InsuredAn additional insured endorsement extends the named insured's liability coverage to protect a third party — typically a client, landlord, or general contractor — from claims related to the named insured's work.
Source: Cover Forge USA editorial team|Last verified: May 2026|Methodology
Definitions are educational and may be simplified. Always refer to your policy contract and consult a licensed agent for terms that affect coverage decisions.
CF

Cover Forge USA Editorial Team

Editorial Lead

This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.

Reviewed June 2026

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