Store owners are gearing up to deal with compensations they may be forced to make if shoppers injure themselves, either by slipping, tripping over loose wires or being burned by fire.
With the busy Christmas shopping season approaching, insurance companies have reported that more store owners are becoming keen on protecting themselves by purchasing public liability insurance. This provides compensation to members of the public if they are injured in a store or other public places.
"Our society is becoming more litigious, public liability insurance is more common today than 10 years ago," said Clara Brown, life-underwriting manager at the United General Group.
Store owners are not required by law to have public liability insurance, but opt for it to protect themselves from the alternative, which is facing a lawsuit of possibly millions of dollars.
They are, however, obligated to take the necessary steps in ensuring the safety of patrons who enter their premises. If an accident occurs on the compound, and it is found to be the result of carelessness or neglect on the part of the owner, then the injured person can make a claim against the owner. If the store owner chooses not to honour that claim then the owner can be sued.
"It is not obligatory that store owners carry public liability insurance, however there is a principle of common law called 'duty of care' which presumes that we are obligated to providing safety and care for the person who comes on our premises," said Cedric Stephens, chartered insurance practitioner. "If they are not covered then the patron can call in their lawyer and take the matter to court."
The insurers also indicated that larger established stores are more likely to be insured than newer or smaller businesses. A recent fire in the Springs Shopping Centre, St. Andrew was offered as an example of this. Fitzroy Hinds, owner of a year old store suffered $20 million dollars in losses. He said he does not have insurance because it is too expensive, but is aware that he could have been sued if someone had been injured.
"Insurance is too expensive...it would cost some $200,000," Mr. Hinds said. He added that "if someone had gotten hurt I would have taken them to the doctor and see what I could do."
The cost of public liability insurance depends on a number of factors, including size, location and contents of the store. Based on the type of goods sold and the number of people who visit the premises, a store can be deemed high risk and therefore attract a high premium.
"It depends on the size and the risk attached, premiums can be from $5,000 to $200,000," said Beverlee Besley, vice- president of general insurance with Firm Insurance Company.
She also explained that the level of coverage determines the amount that can be claimed by an injured patron.
"One cannot claim beyond the restrictions of the policy payment, no one can get more than what the policy allows, unless they sue the owner," Ms. Besley said.
She added that claims can range from $2 million upwards.
Checks with other store owners in the shopping plazas along Constant Spring Road in St. Andrew revealed that many have opted to be insured, while for some, their lease agreement stipulates that they get insured.
Owner of the Craft Cottage, in Mall Plaza, said: "I have to have it. You never know what can happen. But we also protect ourselves, we have railings going down the slope and signs around the store. Public liability insurance for that store is $10,000 for the year."
Owners of malls and plazas are liable if a patron is injured in a common area, which is any shared space outside of a store. But, claims can only be successful if it can be proven that the landlord was negligent.
"Depending on the particulars of the incident, the (mall) owners are responsible if someone gets injured in the common area," said Dennis Chung, property manager at the Sovereign Mall.
K.B.
