Slip-and-Fall Cases: The Changing Landscape of Business Owners' Responsibilities
By: Michael Stein , Farm Bureau Insurance
In case you missed it, the insurance world was shaken up significantly this past summer: in July 2023, the Michigan Supreme Court changed how it interpreted laws regarding premise liability. For over 20 years, property owners and insurance companies have been operating under the “Open and Obvious” doctrine, an interpretation that put most of the responsibility for slip-and-fall cases on the invitee entering a premises if obstacles were deemed avoidable.
For instance, imagine if a parking lot has a noticeable pothole. The court previously said if a person fell in the pothole ,the fall was avoidable because pothole was able to be seen and the person should have planned to walk around it, or at the very least be aware that there was an issue present.
This interpretation made it very difficult to recover damages unless some special circumstances existed. Were the issues unavoidable? If no special circumstances were present, property owners could use the open and obvious defense to protect themselves and won many of these cases. This greatly protected property owners from numerous claims as the court could point to this interpretation and many times this was the end of the lawsuit. The challenge under this doctrine, however, was that it was not always interpreted the same and lacked consistency.
Fast forward to today, we have now returned to the world of premise law prior to 2001. This reversal in the interpretation puts the responsibility back on the owner to protect the invitee on their premise. The courts will use a series of questions to determine fault as it relates to these types of claims. How much fault was each party responsible for? Did the property owner take the necessary precautions to protect those individuals who enter their premise? What condition caused the loss? Was it apparent that it was an issue, and could it have been avoided? Bottom line is that after the courts ask all these questions, they will be making the determination on fault and damages that should be awarded, including now economic damages like hospital bills and lost wages from missed work.
Who is affected? Everyone that owns a business or retail facility should be aware of the change. High traffic business like restaurants, hotels and motels, condominium associations, and apartment complexes, to name a few, may experience much higher frequency of these claims due to the nature of their businesses.
Who is affected? Everyone that owns a business or retail facility should be aware of the change. High traffic business like restaurants, hotels and motels, condominium associations, and apartment complexes, to name a few, may experience much higher frequency of these claims due to the nature of their businesses.
If you have people coming onto your premises, be prepared to take a more active role in your property maintenance. Here area few pointers to help you make changes that could reduce your insurance premiums and enhance your protections:
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1. Pay special attention to sidewalks, parking lots, stairs including handrails, flooring and bathrooms, rugs that can be tripping hazards.
2. Make sure lighting in your business is routinely being maintained inside and out. 3. Resurface parking lots and paint your lines for cars. 4. Put a plan in place to routinely check your property for issues and preforming inspections could greatly assist your insurance company in defending your business should a claim occur. 5. Being able to reference a consistent plan may help lower damages awarded at time of loss. 6. Communicate the importance of maintenance with staff. Letting your team know what is going on and making management aware when items become an issue should help mitigate slip-and-fall hazards. |
A few changes like these can improve guest experience and safety, but it can also help to reduce the increases in insurance premiums and save business owners money on their bottom line, making it easier for owners to provide for their employees and promote a better work environment
However, one of the best ways to tackle these issues is by having a dedicated and informed insurance agent. The right coverage for your business is very important and will need to be adjusted as laws change. I encourage you to reach out to your insurance agent and work to find the solutions that best meet your needs. If you are struggling to get your questions answered or need a second look at your insurance plan, do not hesitate to give us a call at517-333-2060 or email us at[email protected].
For more information about Michael Stein Insurance Agency, check out the website here.
