Liability · Insurance Term
Premises Liability
Definition
Premises liability is the legal responsibility a property owner or occupant has when someone is hurt, or their property is damaged, because of an unsafe condition on the property. It is usually insured under a commercial general liability policy.
In Plain English
As an owner, you may be responsible for conditions like wet floors, broken stairs, poor lighting, potholes in the parking lot, or loose handrails. Common claims include a slip and fall claim, injuries from falling objects, and negligent security claims after a crime on the property.
Liability usually turns on negligence: whether you knew or should have known about the hazard and failed to fix it or warn about it in a reasonable time. Your commercial general liability policy generally pays for defense and covered damages, up to its limits.
In leased properties, both landlord and tenant can be sued. The lease decides who maintains which areas and who must insure what, so it shapes who ultimately pays.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical and simplified: a customer trips on a broken curb in a shopping center parking lot and breaks a wrist. The customer sues the owner and the tenant. The owner's liability insurer would usually defend the owner, and the lease and each party's insurance would help decide who pays.
Why It Matters for Texas Property Owners
Texas courts generally ask whether the owner knew or reasonably should have known about a dangerous condition and failed to use reasonable care. Texas also uses proportionate responsibility: a person found more than 50% responsible for their own injury cannot recover damages (Civ. Prac. & Rem. Code §33.001). For a specific claim, talk with a Texas attorney.
What to Watch For
- Inspect parking lots, walkways, stairs and lighting on a set schedule, and keep records.
- Confirm tenants carry liability insurance and add you as an additional insured where the lease requires.
- Check for exclusions, such as assault and battery or habitability, that can limit premises claims.
- Report incidents to your insurer promptly, even small ones.
Common Questions
If a tenant's customer is hurt inside the tenant's store, am I liable?
You can still be named in the lawsuit. Whether you are responsible usually depends on who controlled the area and what the lease says. Leases commonly require tenants to carry liability insurance and add the landlord as an additional insured.
Does my property policy cover injuries to visitors?
No. A commercial property policy covers damage to your property. Injuries to others fall under liability coverage, usually a commercial general liability policy.
Sources
Last updated October 14, 2026 · Primesure editorial team · How We Write