FAQ: How Are Premises Liability Settlements Determined?

Factors That Affect Premises Liability Claim Settlement Amounts

In determining a premises liability settlement, several critical factors are examined.

These factors range from the nature of your injuries to the property owner’s responsibility for the hazardous condition.

Factors include:

• The severity of your injuries
• Level of negligence by property owners involved
• Impact on your life

The Severity of Your Injuries

The seriousness of your injury is one of the first factors that come into play in a premises liability settlement.

The more severe the injury, the higher the potential settlement, because you’re likely dealing with greater medical expenses, lost wages, and long-term physical or emotional effects.

A sprained ankle might lead to a small settlement, covering medical bills and perhaps a short time off work.

If you’ve suffered a major injury such as a traumatic brain injury or spinal damage, your settlement could reflect the cost of long-term care, lost future income, and even ongoing pain and suffering.

Level of Negligence by Property Owners Involved

In a premises liability accident, the property owner’s responsibility for your injury is crucial.

Negligence generally means that the property owner failed to take reasonable steps to ensure the property was safe.

Common examples of negligence include ignoring broken stairs, leaving a spill uncleaned, or failing to fix damaged sidewalks.

The greater the level of negligence, the more it can impact your settlement.

A property owner who was aware of a hazard and did nothing about it may face a higher liability than someone who was unaware of an unexpected problem.

Impact on Your Life

As with any other personal injury claim, the impact on a victim’s life will be a critical factor in determining the settlement amount.

Settlements are meant to reflect the actual impact the injury has on your daily life.

That includes both financial effects, like medical bills and lost wages, and non-financial effects, such as the pain and emotional distress caused by the injury.

If your injury has left you unable to work or perform basic daily tasks, your settlement amount may increase to cover these long-term impacts.

This part of the settlement also considers whether the injury has affected your ability to earn a living in the future, which can add to the compensation you’re owed.

The Role of an Insurance Company When You're Negotiating a Settlement

Once the primary factors in your case are established, insurance companies often play a substantial role in the settlement process.

Because most premises liability accidents and claims involve some form of insurance, you need to be aware of how an insurance company can affect the settlement you can receive.

How Insurance Companies Assess Your Case

Insurance companies are primarily focused on reducing their costs, which means they often work to minimize the amount they’ll pay out in a claim.

When you file a premises liability claim, an insurance adjuster will review the details of the incident and the evidence you’ve provided, such as photos, medical records, and witness statements.

The adjuster will also evaluate the severity of your injuries, the property owner’s role in the incident, and any signs of negligence.

In cases where they believe the property owner has limited liability, they may attempt to argue that you share fault for the accident.

Offering a Settlement Based on What Saves the Company Money

Adjusters also consider your medical expenses, lost wages, and any long-term effects your injuries might have on your life.

Their job, however, is not to advocate for fair compensation for you, but rather to negotiate a settlement that benefits the insurance company’s bottom line.

This is why many initial settlement offers from insurance companies are on the low side.

They often do not reflect the true extent of your financial losses and suffering, and this is why you need an experienced premises liability lawyer handling negotiations on your behalf.

Other Common Insurance Company Tactics

It’s not unusual for insurance adjusters to use tactics aimed at reducing their payout, so it’s helpful to recognize these strategies.

They might try to downplay the severity of your injuries or imply that they preexisted the incident.

Some may also argue that the property owner had little to no fault in the situation, or they may suggest that you could have avoided the accident by being more cautious.

These strategies are often designed to prompt you to settle for less than you might be entitled to.

Another common tactic is to offer a quick, low settlement before you’ve had a chance to fully assess your injuries.

This can be particularly problematic in cases where injuries have lasting impacts that may not be immediately apparent, such as soft tissue injuries or psychological effects.

By accepting an early offer, you may inadvertently limit your ability to pursue a more accurate settlement later on.

Determining Liability in Premises Liability Lawsuits

Establishing personal injury liability is a critical step in any premises liability case.

Liability determines who is legally responsible for the injuries you’ve suffered and whether the property owner failed to maintain a safe environment.

By understanding what goes into proving liability, you’ll be better prepared to gather the necessary evidence and support your claim.

Breaching the “Duty of Care”

“Duty of care” refers to the responsibility property owners have to maintain a reasonably safe environment for visitors.

This obligation means they must regularly inspect the property, repair known hazards, and warn visitors of potential dangers.

The specifics of this duty can vary based on the location, type of property, and circumstances of the visit, but in general, property owners are expected to take reasonable measures to prevent harm.

For instance, a grocery store owner should have procedures in place for promptly cleaning up spills to prevent slip-and-fall accidents.

The failure to have these measures in place constitutes improper maintenance of a property, which can form the basis of a premises liability case.

Different Types of Visitors and Their Rights

If you enter into a premise, you’ll be considered a “visitor.”

As a visitor, you’re entitled to pursue legal action if you get in a premises liability accident.

However, not all visitors are treated equally in the eyes of the law, and the duty of care owed by the property owner often depends on your legal status as a visitor.

Visitors fall into one of three main categories:

• Invitees are individuals who are invited onto the property for business or commercial purposes, such as customers in a store. Property owners owe invitees the highest duty of care, which includes conducting regular inspections and promptly addressing any hazards.
• Licensees enter the property for their own purposes, such as social guests. While property owners owe licensees a moderate duty of care, they are expected to address known dangers or warn guests of potential risks.
• Trespassers are people who enter a property without permission. Property owners generally owe trespassers minimal duty of care, though exceptions exist, such as for children who may be drawn to dangerous conditions like an unsecured swimming pool.

Understanding your status as a visitor is important because it affects the level of care the property owner should have exercised.

This, in turn, influences the outcome of your claim and the compensation you might receive.

Proving Liability Through Evidence

Proving liability requires demonstrating that the property owner’s negligence directly contributed to your injury.

This involves gathering evidence that establishes both the existence of a hazardous condition and the property owner’s failure to address it.

Common types of evidence include:

• Photographs or Videos: Visual proof of the dangerous condition that caused the accident can be highly effective in showing the hazard.
• Witness Statements: Eyewitnesses can provide valuable accounts of the incident, detailing what happened and any unsafe conditions present.
• Maintenance Records: Documents showing the property owner’s history of repairs or lack thereof can support your claim if negligence is evident.
• Medical Records: Your medical records establish the severity of your injuries and provide a direct link between the accident and the harm you’ve suffered.

When combined, these pieces of evidence can build a strong case, helping to prove that the property owner’s negligence was a significant factor in your accident.

The Statutes of Limitations for Premises Liability Claims

The statute of limitations is a legally imposed time limit on how long you have to initiate a lawsuit after an injury occurs.

If you fail to file within this period, you may lose the right to pursue compensation altogether.

In most states, the statute of limitations for premises liability cases ranges from one to three years.

However, there are differences.

In Illinois, the statute of limitations for most civil cases is two years whereas it’s five years in Missouri.

Average Premises Liability Settlements and What To Expect

Premises liability cases differ depending on the circumstances, which is why it’s hard to come up with a single ballpark figure for personal injury settlements.

Typical Settlement Ranges

Premises liability settlements vary widely based on factors like the severity of the injury, the level of negligence, and the impact on the victim’s life.

Minor injuries might result in settlements of a few thousand dollars, covering immediate medical costs.

In contrast, severe injuries, especially those requiring long-term care or resulting in permanent disability, can lead to settlements in the tens or hundreds of thousands.

Factors That Can Increase Settlement Amounts

Cases involving clear negligence, severe injuries, or substantial financial losses often result in higher settlements.

If the injury has a lasting effect on your quality of life, work ability, or emotional well-being, these factors will generally increase the compensation you’re entitled to.

The Premises Liability Lawsuit Process

Filing a premises liability claim involves several steps, each of which can impact the success and value of your settlement.

The steps of a premises liability lawsuit includes:

1. Consult an attorney
2. Gather evidence and document the hazard
3. Notify the property owner
4. Settlement negotiations with the property owner’s insurance company

1. Consult an Attorney

The first step in filing a premises liability claim is consulting with an experienced attorney.

A lawyer specializing in premises liability can evaluate the details of your case, guide you through the claims process, and help protect your rights.

With an attorney’s support, you’re more likely to secure fair compensation.

2. Gather Evidence and Document the Hazard

Collecting evidence is a crucial step in proving your claim.

This may include photographs, witness statements, and medical records.

Your attorney can also help gather additional evidence, such as property maintenance records, that may show the property owner’s negligence.

3. Notify the Property Owner

In many cases, it’s necessary to inform the property owner or manager about the injury and your intention to file a claim.

This notification gives the property owner a chance to address the hazard and informs their insurance provider of a pending claim.

4. Settlement Negotiations With the Property Owner’s Insurance Company

After filing your claim, negotiations with the insurance company typically begin.

Your attorney will represent you in these negotiations, advocating for a fair settlement based on the evidence and the impact the injury has had on your life.

If the insurance company offers an inadequate settlement, your attorney may advise taking the case to court.

How a Lawyer Can Maximize Your Premises Liability Settlement

In premises liability cases, the support of a knowledgeable lawyer can make a significant difference.

From navigating complex legal rules to negotiating with insurance companies, a lawyer ensures your case is presented effectively to secure fair compensation.

Investigating the Case Thoroughly

A skilled premises liability lawyer will conduct a detailed investigation to strengthen your claim.

This might include gathering additional evidence, interviewing witnesses, and consulting with experts if needed.

The stronger the evidence, the more likely you are to achieve a favorable settlement.

Negotiating With Insurance Companies

Insurance companies have teams of adjusters and attorneys whose main goal is to minimize payouts.

Your lawyer understands these tactics and will negotiate firmly on your behalf, ensuring that the settlement offer reflects the true impact of your injuries and losses.

Securing Compensation for Financial and Emotional Damages

Beyond covering medical bills and lost wages, your lawyer will help secure compensation for pain and suffering, emotional distress, and other damages that may not have a clear dollar amount.

This ensures that your settlement reflects the complete impact of the injury on your life.

TorHoerman Law: Your Personal Injury Law Firm

Premises liability settlements hinge on several important factors, including the severity of the injury, the property owner’s negligence, and the impact on your life.

Understanding these factors and the process of filing a claim can help you navigate the settlement journey more confidently.

If you’ve been injured on someone else’s property, remember that we are just a call away.

Contact TorHoerman Law for a free consultation.

You can also use our chatbot to find out if you’re eligible for a premises liability lawsuit.

As your premises liability attorneys, we can hold negligent property owners accountable and ensure that you recover a fair settlement.