Whether you are shopping, attending a concert, dining at a restaurant or catching up with friends at a bar, you assume the owner of the property has done their due diligence to ensure the location is safe. However, in too many cases, property owners neglect the overall maintenance and security of their properties, inadvertently allowing criminal acts to occur.
Negligent security claims are currently one of the fastest-growing claim trends. These claims pose a significant risk to business owners and insurers.
What Is Negligent Security?
Negligent security is the failure to protect individuals in a public area from criminal acts. Unfortunately, crimes such as shootings, muggings and assaults can happen anywhere. The institutions most affected by negligent security actions include multi-unit residential properties, hotels/motels, retail establishments, restaurants, bars and casinos. When a crime occurs, negligent security claims allow victims to seek compensation for their injuries and damages.
Who Can Be Sued for Negligent Security?
Typically, property owners are responsible for ensuring adequate security measures are in place. However, if another entity (such as a property manager, a landscaper, or a commercial tenant) has agreed to take over aspects of a property’s upkeep, that entity may be partially or fully liable as well. The question of who is liable is highly dependent on the specifics of the case and the contractual relationships among the defendants.
The following parties may be found liable:
- Property owners
- State or municipal governments
- Security companies
- Property management companies
- Landscaping companies
- Parking lot management companies
How Can Your Insureds Protect Their Properties?
While it’s impossible to eliminate crime all together, you can ensure the businesses you’re insuring have reasonable measures in place to minimize their — and patrons’ — risk. Some reasonable measures include the following.
Maintaining adequate lighting: All lights in parking lots and alleyways should be in working order. “No Trespassing” signs should also be hung in alleyways. Business owners should keep a regular inspection schedule to ensure that all lighting continues to work sufficiently.
Installing and maintaining a closed-circuit television (CCTV): CCTV refers to video surveillance, or the use of video cameras to transmit a signal to a specific place. In addition to having a CCTV, businesses should have signage indicating that there is surveillance on the premises. Cameras should be tested regularly to ensure they are functioning properly. Video footage should be retained and not recorded over quickly in the event that there is an incident where you need to refer to the footage. Fake cameras are never recommended, as they can create a false sense of security.
Maintaining the landscape: When landscaped areas are insufficiently lit, they become optimal places to commit crimes.
Having safety and security procedures in place: Staff should be trained in how to prevent crimes from occurring. Additionally, standards should be in place that discourage violent behavior. We offer our customers and policyholders discounted background check services through the Business Resource Center.
Lastly, business owners should become familiar with their state’s premises liability laws and look out for (and report) suspicious behavior. They can also work with neighboring businesses to deter criminals from hanging out near or on the premises.
What to Do if a Crime or an Accident Occurs?
If a crime or an accident occurs on your or an insured’s property, follow these steps:
- Notify local authorities immediately to report the crime
- Notify your insurance carrier immediately
- Preserve all photos and cameras in the area to use as evidence to defend the claim
To learn more, stream our previously recorded webinar, Negligent Security Trends: Risks, Challenges and Reducing Exposure, or register to attend our upcoming webinar, Negligent Security: Is Your Property Protected?, on Tuesday, October 17.
Disclaimer: This content is being offered for general informational purposes only. It does not constitute legal advice of any kind. You should consult with your private attorney or a local attorney for any questions related to your business.
