On Premise Loss Prevention

Commercial general liability insurance policies normally cover property damage and injury suffered by a third party. 

Liability loss prevention includes any measure taken to prevent or minimize damages and injuries that could be suffered on your business premises by a third party. Some common liability losses include:

  • Damage to the property that you are being paid to work on
  • Damage to property belonging to people other than clients and/or customers
  • Injury to clients and/or customers either on your premises or off premises at a job site
  • Injury to people other than clients and/or customers who may be in the vicinity of your premises or job site.

Legal Liability

All individuals and organizations have a legal obligation to conduct themselves in a manner that is reasonable and that does not wilfully or negligently cause injury or damage to others. Reasonable precautions must be taken in the conduct of your operations to prevent such damage or injury. 

If you fail to take reasonable care to prevent these things from happening, you may be held responsible for compensating individuals/organizations for their damages. Precautions such as regular premises inspections and maintenance should be carried out and carefully documented.

Learn risk management best practices for your organization and as well as how to handle a claim.


Source: Compiled with Canadian Risk Intervention Inc.