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Business Insurance| Chandler AZ| Southwest Premier Insurance Agency, LLC| (480) 336-2707
As I’ve written in my previous blog posts recently, you, the business owner, face a wide array of liability risk in your daily operations. Much of this risk comes from the Real Property that you control.

What I’m talking about is your office, retail, warehouse, or industrial space. If you have a home-based business you’re not off the hook either.

Whether you’re an owner of the property, a tenant occupying the property, or someone else in control of the real property you owe a certain degree of care to the people who may come to the property.

I’ll describe the three types of people who may come to your property and the degree of care owed for each one.

1)      Invitee – this person has an express or implied invitation to be on the premises possessed and controlled by the business entity or individual and is invited to be on the premises in the hopes of achieving a present or future benefit for the possessor of the land.

  • Think retail store, restaurant, etc.

What Degree of Care do you owe for this person?

  • Inspect Premises
  • Correct any known hazards
  • Warn of any dangers
  • High degree of care

2)      Licensee – this person is on the premises of another with the legal privilege to be on the premises and on the premises for the personal benefit of the licensee.

  • Think employee, delivery person, etc

What Degree of Care do you owe for this person?

  • Warn of any known dangers
  • Correct any known hazards
  • Ordinary care

3)      Trespasser – this person enters a premise of another without invitation, consent, legal privilege, lawful authority or legal right, or one who enters lawfully but uses the premises without legal sanction.

What degree of care do you owe for this person?

  • Not intentionally harmed
  • Less than ordinary care

Courts in Arizona apply and distinguish between the traditional classifications listed here. Other states don’t and may see no difference between the three classifications.

Tip for all businesses: Establish a process to inspect your premises regularly to discover possible hazards that have developed. Correct any hazards promptly. Ensure that all warning signs are used at all times (caution signs when mopping floors).  Train and instruct employees to follow procedures when dealing with hazards in the workplace.

Takeaway: Have the attitude that you are responsible for a High Degree of Care no matter the type of person that may come to your premises.

Final thought: Do you have an Attractive Nuisance on your premises? This is something on the premises which could be a source of danger to children. All businesses (and persons for that matter) are under a duty to take such precautions as a reasonably prudent person would take to prevent injury to children who may, because of attraction, come there to play.

Reduce the liability risk your business faces by following these tips and takeaway. Would you like a review of your business premises? I would be glad to walk your property with you to provide an unbiased assessment of your risk. Call the office at (480) 336-2707 to schedule your review.

Author Richard Morris

Richard Morris, an independent insurance agent in Chandler, Arizona, has been serving and helping Arizona families and businesses with all their insurance needs for over 23 years. Visit his website at to see all the ways he can help you with your insurance needs or call the office at (480) 336-2707 or toll free at (888) 907-9349. Connect with Rich on Google+ and Twitter.

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