Protection for injuries or property damage that happen on your business property or because of your everyday business activities.
If you run a business, even a small one, accidents can happen when you least expect them. A customer slips on a wet floor. A delivery driver trips over equipment. A contractor accidentally damages someone’s property while doing routine work. This is where Premises and Operations insurance comes into play.
In simple terms, Premises and Operations insurance covers your business if someone gets hurt or their property is damaged because of your business location or your regular business activities.
Understanding Premises and Operations Insurance
Premises and Operations insurance is usually part of a commercial general liability (CGL) policy. It focuses on two main areas:
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Premises: Your physical business location, such as an office, shop, warehouse, or restaurant.
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Operations: The everyday activities your business performs, whether they happen at your location or somewhere else.
If a third party (like a customer, visitor, or vendor) suffers bodily injury or property damage because of these areas, this coverage helps protect you financially.
What “Premises” Coverage Really Means
Premises coverage applies to accidents that happen on your business property during normal operations or routine maintenance.
For example:
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A customer slips and falls in your store.
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A visitor is injured by a loose handrail.
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A maintenance issue causes damage to someone’s personal property.
As long as the injury or damage is related to the condition of your premises or routine upkeep, Premises and Operations insurance may help cover medical bills, repair costs, and legal expenses.
What “Operations” Coverage Includes
Operations coverage focuses on injuries or damage caused by your business activities, whether they happen on-site or off-site.
For example:
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A plumber accidentally damages a client’s home while fixing a pipe.
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A catering company causes property damage at an event venue.
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A cleaning service breaks valuable equipment while working at a client’s office.
Even though these incidents happen away from your business location, they are still considered part of your operations. Premises and Operations insurance helps cover the resulting claims.
What This Coverage Typically Pays For
If a covered accident occurs, Premises and Operations insurance may help pay for:
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Medical expenses for injured third parties
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Property repair or replacement costs
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Legal defense fees if a lawsuit is filed
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Settlements or court judgments (up to policy limits)
This can be a huge relief, especially for small businesses that may not have the cash to handle large claims on their own.
What’s Usually Not Covered
While Premises and Operations insurance is helpful, it doesn’t cover everything. Common exclusions include:
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Injuries to employees (covered by workers’ compensation instead)
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Damage to your own property
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Professional errors or negligence
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Intentional acts
That’s why many businesses combine this coverage with other types of insurance for more complete protection.
Who Needs Premises and Operations Insurance?
Almost any business that interacts with people or property can benefit from Premises and Operations insurance, including:
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Retail stores and restaurants
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Contractors and service providers
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Offices and professional spaces
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Warehouses and manufacturing facilities
If people visit your location or you perform services for clients, this coverage is especially important.
Why It Matters for Your Business
One accident can turn into a costly legal claim. Without Premises and Operations insurance, you may have to pay out of pocket for medical bills, repairs, or lawsuits. With the right coverage, your business has a financial safety net that helps you stay focused on running and growing your company.
Understanding Premises and Operations insurance helps you make smarter decisions about protecting your business. It’s not just about insurance—it’s about peace of mind when the unexpected happens.
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