A potential La Niña event could soon bring wetter weather to parts of the northern U.S. and Canada, the Associated Press recently reported, which goes hand-in-hand with risks for potentially dangerous and costly slip-and-fall incidents.
Featured Solutions
Businesses should be prepared, as slip-and-fall accidents lead to numerous injuries — and lawsuits — each year, said Saad Ali, Associate Broking Commercial Manager, Commercial Insurance, Ontario Division, Burns & Wilcox, Ottawa, Ontario.
“With winter around the corner, slip and falls are always a concern — not only for individuals but for business and property owners, as well,” Ali said. “It is important for anyone who owns a business or property to ensure they have adequate Commercial General Liability (CGL) Insurance coverage in place, which could cover for incidents that can occur on owned or leased property, as well as defense costs, which can become exuberantly expensive if uninsured.”
Larger six figure claims are becoming more and more common, depending on the state. Some states are more litigious, and courts are more in favor of victims than others.
Business owners may also be encouraged to carry Excess Liability Insurance, which can be crucial in the event of more serious injuries, said Joe Suda, Senior Director, Excess Casualty, Burns & Wilcox, Farmington Hills, Michigan.
“Larger six figure claims are becoming more and more common, depending on the state,” Suda said. “Some states are more litigious, and courts are more in favor of victims than others. The same injury can be handled differently state by state, depending on how that court reacts and how at fault the business owner was.”
Slip-and-fall hazards may be underestimated
In the U.S., slip-and-falls account for more than 1 million hospital emergency room visits each year, according to the National Floor Safety Institute. Older adults are particularly at risk, with 1 in 3 individuals over the age of 65 experiencing a fall. About a third of older adults fall each year in Canada, as well, according to the Public Health Agency of Canada, and falls are the leading cause of injury-related hospitalizations and deaths among those 65 and older.
“Business owners do not always understand the potential severity of a slip and fall,” said Barb Habel, Vice President, Head of Excess Casualty, Atain Insurance Companies (an admitted and non-admitted property and casualty insurance company dedicated to serving niche programs and E&S markets). “With someone under the age of 25, the likelihood that they will bounce back from a slip-and-fall is much higher. When you are older, there can be different health complications.”
With winter around the corner, slip and falls are always a concern — not only for individuals but for business and property owners, as well.
For example, a slip-and-fall could result in a hip replacement, knee replacement, or slipped discs, she said, “all of which are losses that could pay anywhere from $500,000 to $3 million, depending on the outcome and the state where they are located.”
Winter weather contributes to a significant portion of slip-and-fall accidents; in Canada, 18% of slipping incidents occurred on ice or snow, the Public Health Agency reported. In the U.S., about 97% of all weather-related injuries have been attributed to slips or trips on ice or snow, according to the Centers for Disease Control and Prevention.
I have seen slip-and-fall losses cost almost $1 million because a hip needed to be replaced, which then gets into physical therapy, rehab and all of the expenses that go with that.
Lawsuits following slip-and-fall accidents on business property — whether in an icy parking lot or inside the building due to tracked-in snow — are not uncommon, and the costs associated with them can be covered by CGL Insurance and Excess Liability Insurance. A fall incident on business property is more likely to lead to a lawsuit when injuries are more severe, cause longer-term issues, or when the individual has “a broken bone or some type of back strain,” Habel said.
“From a business owner’s standpoint dealing with the winter weather, if they have a customer footprint, their biggest concern should be that slip-and-fall exposure,” she said. “I have seen slip-and-fall losses cost almost $1 million because a hip needed to be replaced, which then gets into physical therapy, rehab and all of the expenses that go with that.”
Business owners, snow removal contractors may be held liable
The cost of a slip-and-fall accident lawsuit can vary significantly. For example, a $220,000 settlement was reached in July for a man who suffered a traumatic brain injury and fractured his elbow in a tripping incident on private property, according to Law.com; and an $800,000 verdict in 2023 for a woman who slipped and fell on a wet floor at an Applebee’s restaurant in Massachusetts. In Cambridge, Ontario, a woman recently filed a $1.5 million lawsuit against Costco after a slip-and-fall on a wet floor, Cambridge Today reported.
While these incidents can present gray areas as to who is responsible — for instance, the Ontario Superior Court of Justice ruled in May that slip-and-falls on black ice should be considered “accidents” under the Statutory Accident Benefits Schedule, according to Law Times — it is not uncommon for multiple entities to be brought into lawsuits when an individual is injured. According to Suda, this may include the business owner, property owner, and the snow removal contractor responsible for maintaining the property.
“If an apartment complex subs out their property management, which is common, the contract language and risk transfer mechanisms within their insurance policies becomes very important,” Suda said.
With CGL Insurance, covered expenses can include medical expenses, legal defense, settlements and more. Excess Liability Insurance can provide additional liability limits above and beyond what is offered by the company’s CGL Insurance policy.
Snow removal contractors face a unique risk when trying to respond to ongoing winter weather events, Suda added. “Snow removal is a very tough business. They may do their snowplow work first thing in the morning, but if there is a mid-day snowfall or ice-over, they are technically responsible for that,” he said. “That really falls back to making sure their contracts are pretty foolproof and that there is a true understanding of when they are going to be applying services and how often they will return.”
When a business owner hires a snow removal contractor, it is important to make sure that the company is also adequately insured. “They should ask the question, ‘Does my contractor carry insurance and if so, is their limit of liability adequate?’” Ali advised. “In a lawsuit, courts can consider several factors, which can include timing of snow removal and any measures taken to prevent slip and falls from occurring.”
Taking steps to reduce injury risks
Although not all slip-and-fall incidents can be prevented, steps such as monitoring conditions, hiring professional snow and ice removal services, keeping floors clear, installing slip-resistant flooring, and using “wet floor” signage can be helpful in preventing incidents.
“Focus on high-foot-traffic areas, uneven surfaces, hiring professionals and most importantly, place warning signs for third parties to be aware of the risks,” Ali advised, pointing out that insurance will remain a key part of risk management for business owners and snow removal contractors. “Snow removal businesses are considered high-risk, therefore, CGL Insurance is essential to protect against potential claims and financial risks.”
According to Habel, business owners should “partner with a very good retail broker who will make sure there are no gaps in their coverage.”
“A good retail broker will educate the business owner and ask about their contractual language. Does their contractual language state that all instances fall back on them?” she said. “Not all business owners are aware of that.”
Contract review is important, Suda agreed. “Business owners should review their contracts and their risk transfer, making sure the proper risk transfers are in place so that there is a clear line in the sand where you know you are going to be at fault or not,” he said. “Ask a trusted professional to review these contracts to make sure they are covered and that their insurance policy is doing what it should be doing. That is where your insurance broker really plays a vital role.”
Social inflation continues to increase the overall cost of litigation, Suda added. “We are seeing a lot of claims that might have been less expensive five years ago, and they are now triple the cost that they were due to social inflation in the world,” he said. “Unfortunately, we do not see that stopping anytime soon.”
