Hazards Around the Corner: Premise Liability & The Cost of Injury

By Lindsey DiGangi, Vice President of Field Operations

As a business owner, you have responsibility for the safety of the visitors who step onto your property. Don’t have regular customer foot traffic? Don’t think this article isn’t for you- visitors include all invitees, such as contractors or vendors you have in your facility, along with licensees.

This responsibility requires a standard of care designed to help prevent harm due to unsafe conditions. If a retailer knows or has “constructive knowledge” of a hazardous condition, it is possible that the company will be held liable in court. For lumber business owners, understanding factors that contribute to these claims, known as premises liability claims, and where their responsibility as business owners lie, is important to keeping individuals and the business protected.

The most common types of incidents connected to premises liability claims are slips, trips, and falls. These aren’t just caused by the spill in aisle 5, however. Duty of care starts as soon as you enter the property. That means your parking lot and your yard maintenance are just as critical. We often see claims related to fall hazards outside, including potholes, overgrowth, improper handrails, and poor lighting. Inside, your aisles do matter. Conditions can change quickly when you have heavy foot traffic. You may be tight on space, but don’t sacrifice clear aisles for temporary or permanent storage of goods. These are sure trip and fall hazards. Another common type of claim we see is related to improper storage of products. This extends beyond goods in walkways. We often see product stacked too high or shelving not secured to walls that lead to falling objects and crush injuries of passerby. Using heavy machinery is commonplace in the lumber industry, whether it’s a forklift, a scissor lift, or another type of equipment. If routes, inside or out, have not been cleared of pedestrians, or equipment is handled improperly, these machines can and do cause devastating injuries.

Different factors influence the severity of these incidents. Daily operational hazards related to slips and falls, spills or misuse of equipment may seem like small factors, but when an injury occurs, they can result in lawsuits, unanticipated financial burdens, and reputational harm. A social inflation has climbed, so too have jury awards for premise liability-related injuries, adding financial challenges and legal jeopardy to these already unfortunate incidents.

Food for thought: As weather patterns continue to change, so too might the hazards present on your premises. Unexpected extreme winter weather, for example, may create new slip and fall hazards in your yard or parking lot. Be prepared with plans, even if these conditions are not common.

How can lumber businesses mitigate premise liability claims?

Mitigating premises liability claims requires planning, consistency, and commitment from business owners and their employees. That vigilance starts with a few following best practices:

• Conduct hourly inspections: A designated team member should be tasked with walking through the high-traffic areas of a lumber business to check for hazards on an hourly basis. The route should be pre-determined and consistent. Keep timestamped inspection logs that are signed and stored securely. They may serve as critical evidence in case of a claim and should be treated accordingly. Surveillance cameras, backed up by extra batteries, can also be helpful in monitoring. Don’t forget to maintain the footage!
• Maintain maintenance logs: Any maintenance matter, ranging from clearing snow and putting salt down to regular equipment upkeep should have a plan and be performed consistently and recorded in a log.
• Use signage: Ensure appropriate and clear signage is posted to highlight egress, restrict access, and warn of other constant hazards. Temporary signage should be used to warn against spills, and other temporary hazards across the property’s perimeter. Such signage should factor in the possibility of non-English speaking visitors as well.
  
• Leaders set an example: Safety buy-in starts at the top. Lumber business owners should model the behavior they expect their team members to exhibit by contributing to safety upkeep, helping to maintain clear pathways property wide, and correcting poor behavior or practices in the moment. Safe practices not only benefit visitors, but your employees as well!

The risks to lumber businesses in terms of the law, workplace safety, facilities management and a range of other issues will continue to add complexity to those who own and operate these companies. It’s critical to maintain the proper safeguards to keep these risks from developing into costly claims.