What is premises liability insurance?
Premises liability insurance can protect your business if someone gets hurt or their property is damaged while visiting your location. It could apply to accidents like a slip and fall in your lobby, a fire caused by bad wiring, or debris from an unmarked renovation zone. Coverage can help with medical bills, repair costs, and related legal expenses.
With Progressive Commercial, you can get premises liability coverage as part of a general liability or business owners policy (BOP). When you're ready, call us to learn more about your options or get started with an online quote.
Why small businesses need premises liability insurance
Accidents on your property can lead to expensive medical bills, legal fees, and settlements. Without premises liability coverage as part of your small business insurance, you could be financially responsible if someone is injured or their property is damaged while at your business.
For example, if a visitor falls down your steps and breaks their leg due to a loose handrail, you could be responsible for their medical expenses and other related costs. Premises liability coverage can help pay those bills and limit your financial risk.
What does premises liability insurance cover?
Premises liability insurance focuses on third-party injury and property damage related to unsafe conditions on your business property. This coverage can help with certain costs tied to those claims, such as:
- Medical expenses for injuries that happen on your premises
- Repair or replacement if a visitor's property is damaged
- Legal fees, including defense costs and settlements if a claim or lawsuit is filed
What isn't covered by premises liability insurance?
Premises liability insurance won't help with events like:
- Employee injuries: Workplace injuries are typically covered by workers' compensation insurance, not premises liability.
- Damage to your own property: Commercial property coverage on a BOP can help cover damage to your building, equipment, or business personal property.
- Professional advice and mistakes: Errors and omissions (E&O) insurance can help protect against claims tied to your advice or services.
Progressive Commercial can help you find the right business insurance for your needs. Start a quote or call and speak to one of our insurance experts today.
Premises liability vs. general liability insurance
General liability offers broad protection for common business risks. It typically covers bodily injury, property damage, and personal and advertising injury.
Premises liability coverage is a specific part of general liability insurance. It focuses on injuries or property damage that happen on your business property because you didn't meet your duty of care.
What does duty of care mean?
Duty of care refers to a business owner's legal responsibility to take reasonable steps to keep visitors safe. Your level of responsibility depends on who enters your property. Generally, there are three classifications of visitors:
- Invitees: Customers, clients, or others invited to your premises for business purposes. You owe these visitors the highest duty of care, which includes regular inspections, fixing known issues, and posting clear warnings.
- Licensees: Social visitors or others who have permission to enter but aren't there for business reasons. You owe them a moderate duty of care, and they should be able to rely on a safe environment.
- Trespassers: People who enter your property without permission. They usually can't sue, but exceptions can apply if children are injured by something that attracts them, like fountains or construction equipment. In these cases, you could be held responsible under the attractive nuisance doctrine.
How much does premises liability insurance cost?
At Progressive Commercial, premises liability coverage is included in a general liability policy. In 2025, the median monthly cost of general liability insurance for new customers was $55, with an average premium of $79 per month. However, your rate may vary based on certain factors, including:
- Profession
- Building location
- Number of employees
- Claims history
You can also get premises liability as part of a business owners policy. See BOP insurance rates through Progressive Commercial.
Who needs premises liability insurance coverage?
If you allow people on company property, you're responsible for providing a reasonably safe space. Premises liability insurance can benefit many types of business locations, including:
- Restaurants and cafés
- Retail stores
- Medical and dental practices
- Construction sites
- Real estate offices
- Warehouse and storage facilities
- Office buildings
- Event venues
Simple ways to keep your property safe
Small steps can make a big difference in keeping visitors safe. Keep a regular log of safety checks and address issues quickly. Install cameras in high-traffic areas to help monitor activity and support your business in the event of a claim. And if your property has an attractive nuisance, like a pool or playground, secure it with fencing, locks, and warnings to reduce risk.
Frequently asked questions about premises liability insurance
Do I need premises liability coverage if I lease property to tenants?
Yes, you may need premises liability insurance if you're responsible for maintaining the safety of the property. Even if a tenant carries their own liability coverage, it usually won't protect you from claims tied to unsafe conditions you're responsible for.
Does premises liability cover injuries to my employees?
No. Premises liability insurance only applies to third parties, such as customers or visitors. Employees are typically covered by workers' compensation insurance, which helps pay for medical expenses and lost wages after a workplace accident. Workers' comp is required in most states, so check the laws where you live to see if you need coverage.
How do you determine what my premises liability premium will be?
Insurers calculate premises liability costs as part of general liability insurance. They'll usually evaluate your location, property, how it's used, how much foot traffic it gets, and the safety measures you have in place. The more risk your business represents, the higher your premium may be.
Why choose premises liability insurance with Progressive Commercial
You work hard to keep your business clean, safe, and welcoming for customers, vendors, and contractors. But even with the best precautions, accidents can still happen. If something goes wrong, premises liability insurance can help your business and the people who count on it.
Progressive Commercial has over 50 years of experience helping business owners like you. Whether you choose a general liability policy or the broader protection of a BOP, our insurance experts will work with you to get coverage you can trust. Call us or start a customized quote online today.
