This guide is general information, not insurance or legal advice. Coverage, prices and rules vary by insurer and by state, so read your policy documents and check with your insurer, a licensed agent or your state’s department of insurance before you decide.
Key facts
- Call 911 for a serious injury and make the hazard safe, but photograph the scene before you clean it up when safety allows.
- Save security camera footage right away, because many systems record over old footage after a short period.
- Report the incident to your insurer even if no one mentions a lawsuit, and do not incur expenses for the injured person beyond first aid.
- Commercial general liability usually pays legal defense costs and damages up to your policy limits, but punitive damages are generally not covered.
- Medical payments coverage is a limited benefit for injuries on your premises, separate from a full liability claim that turns on who was at fault.
A customer slips near your entrance, or trips over a rug and lands hard. What you do in the next hour matters almost as much as the injury itself, because what you say, save and send to your insurer shapes how the claim goes.
Get medical help first, then make the area safe
The injured customer comes before the paperwork. If the injury appears serious or the person asks for an ambulance, call 911 and wait for paramedics; when in doubt, call. While you wait, provide sensible first aid, such as applying pressure to stop bleeding. If the injury looks minor and the customer declines an ambulance, offer a quiet place to sit and ask whether they want ice or water.
Stay calm and professional. Show concern, but do not admit fault, assign blame, or promise that your business or insurance will pay for anything. Fault gets worked out later by investigators and, if needed, the courts. Early apologies and promises can complicate the claim and any legal proceedings.
Once the customer is cared for, deal with the hazard. Clean the spill, block off the torn step, or put out a warning sign. One exception: do not remove the hazard before documenting it, unless leaving it in place would put someone in danger.
Document the scene before you clean up
Photographs are worth more than memory. Photograph the floor, walkway, entryway, stairs, rug, display or anything else involved in the fall, plus the warning sign or barrier you put in place afterward. Then write down what happened, when, the conditions at the time, what the customer said occurred, and the steps you took after.
If your cameras recorded the fall, preserve that footage right away. Many systems automatically overwrite older recordings to free up space, and once a clip is gone it is gone.
Collect the customer’s and witnesses’ details
Get the customer’s name and contact information before they leave, even if they say they are fine. Witnesses among other customers or employees can offer a different view of events, so collect their contact details and a short statement from each. These accounts help the insurer build a clearer picture later.
Start a file now. Keep copies of everything you submit to your insurance company and everything they send you, and record the names and phone numbers of everyone you speak with during the claims process.
Notify your insurer and stick to the facts
Contact your insurance agent or insurer promptly, even for an injury that looks minor. Asking questions early costs nothing; waiting can cost plenty. A fall on your premises is a classic occurrence that may or may not become a lawsuit, and a business owner’s policy requires you to report it anyway. Give the insurer the specifics of the event and contact information for any witnesses.
Two rules matter while the claim is open. First, do not incur any expenses for the injured person beyond first aid. Second, if the customer does file a lawsuit, notify the insurer immediately and cooperate with the investigation and defense.
Risk to know
Say nothing that admits or implies guilt, and make no promises about payment, to the customer or to anyone else. What you say in the first hour can follow the claim for months.
What your general liability policy usually covers
Customer injuries are typically handled through commercial general liability insurance, which covers non-professional negligent acts arising from your premises, operations or employees. A customer tripping on loose flooring is one of the standard examples. If you are found legally liable, the policy usually covers your legal defense costs and pays damages on your behalf, up to the limits of the policy. Negligence simply means failing to exercise reasonable care, and businesses owe customers that duty. That does not make you liable for every injury on your property; the facts decide.
For small businesses, this coverage often comes as part of a business owner’s policy, which bundles property and liability cover in one contract. Check the exclusions either way. Punitive damages are generally not covered, and limits are what you selected at purchase, so a serious injury could exceed them. Our guide to what small business insurance really costs explains how limit choices affect the price.
Medical payments coverage versus a liability claim
Many CGL policies include a third coverage that works differently from the liability side. It pays limited medical costs when a non-employee is hurt on your premises or while exposed to your operations. It is not an admission of fault, and it is much smaller than a liability settlement.
| Medical payments coverage | Liability claim | |
|---|---|---|
| What it pays | Limited medical costs for the injured non-employee | Damages, settlements and defense costs if you are found liable |
| Fault | Not a finding that the business was negligent | Turns on whether the business failed to exercise reasonable care |
| Size | A small, fixed amount within the policy | Up to the liability limits you selected |
What happens during the investigation and any settlement
Once you report, the insurer takes over the evaluation. It may send an adjuster to inspect the premises and examine your books and records, so have your documentation ready: photographs, footage, the incident report and witness statements. Cooperate fully and hand over everything.
If the two sides cannot agree on a settlement, the dispute can go to trial, or they may choose arbitration, where both sides agree in advance to accept the arbitrator’s decision. Rules for deciding liability and damages come from the state where the suit is filed, and damages depend in part on the economic losses the injured person can prove. Even a business cleared of wrongdoing can spend significant time and money on a defense, which is exactly what the liability side of the policy is designed to pay for.
If a claim or lawsuit arrives, the insurer should be your first call, and your policy the first document you reread. Our small business insurance terms guide explains the vocabulary you will meet along the way, and how to insure a home-based business covers the gaps that catch home business owners off guard.
Questions we hear
Do I have to report a minor customer injury to my insurer?
Yes. A fall on your premises is the kind of occurrence a business owner’s policy requires you to report, even if the person never mentions suing. Reporting early also preserves details that are easy to forget later.
Can I apologize or offer to pay the customer’s medical bills?
Show concern, but avoid admitting fault or promising payment. Fault is worked out later by investigators and, if needed, the courts, and early promises can complicate the claim.
What if the customer sues for more than my policy limits?
Your policy pays only up to the liability limits you selected. Amounts above those limits are your responsibility, which is why limit choices matter when you buy or renew.
Am I automatically liable for any injury that happens at my business?
No. Businesses owe customers a duty of reasonable care, but you are not necessarily liable for every injury on your premises. The facts of the incident and your state’s law determine the outcome.