Laws on Liability Insurance Injury While at a Store
Liability insurance is a system designed for paying claims to third parties who have sustained injury as a result of the negligence of the policy owner or insured. Most insurance companies are not obligated to indemnify the insured against claims of injured third parties unless there is a showing that the negligence of the insured was the proximate cause of the injuries.
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Determining Negligence
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An owner of a store owes its patrons and visitors who are lawfully on the premises a duty of reasonable care to guard against risks that he knew or should have known could cause injury. This includes risks or hazardous conditions that are reasonably foreseeable. If an individual sustains injury as a result of the store owner's negligence, the owner is liable for that person's injuries.
How Liability Insurance Works
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Liability insurance provides protection to the store owner for any claims filed by third parties who have sustained injuries on the premises. After a person notifies the store owner of his injuries, pursuant to the terms of the policy, the store owner, as the insured, must notify the insurance carrier who then makes a determination whether to pay the claim. If the refusal of the insurance company to pay the claim results in a lawsuit against the store owner, the insurance company steps into the shoes of the insured in a process known as subrogation and defends the insured against the negligence action.
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Contributory Negligence
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It is important to note that if the negligence of a plaintiff himself in a personal injury action is found by a jury to have contributed to the accident, then his claim for damages will be defeated. Examples could include ignoring warnings that were clearly posted as to hazardous conditions on the premises; going into areas of the store that were marked as off-limits to customers; or, engaging in reckless activity such that he assumed the risk of his resulting injury.
Comparative Negligence
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Since a finding of contributory negligence by a jury will defeat a plaintiff's claim, many jurisdictions have replaced the contributory negligence doctrine with a theory of comparative negligence. Under comparative negligence, a plaintiff's negligence is ranked on a scale of 0 to 100 percent in assessing the amount of his own fault. If a jury finds the plaintiff's own negligence was greater than 50 percent, recovery will be denied. Under another version, the plaintiff's recovery is reduced by the percentage amount he is determined to have been at fault.
Considerations
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Frequently, a liability insurance carrier who initially refused an injured party's claim for damages will settle with the individual prior to trial. The settlement posture of the carrier is determined in part by the strength of the personal injury plaintiff's case as well as the cost of continuing to litigate the matter.
If the plaintiff is awarded damages after trial, the insurance carrier pays out only the amount of the coverage limits under the policy. The inured party can seek the balance from the store owner or any other parties (joint tortfeasors) who share responsibility for his injuries.
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