If you’re the type of person who reads the fine print, you may notice an exclusion in your insurance policy for “assault and battery.”
Insurers will often add this exclusion to policies as it relates to your business’s liability or alleged liability for failing to prevent or allowing/promoting an environment that allowed an assault or battery incident to take place.
Three common claims scenarios
- An intruder breaks into an apartment building to settle a score with one of the residents. Resident sues the landlord for not providing adequate security. Specific examples of this would be – locks not being properly secured, outdoor lighting being insufficient (which may have otherwise acted as a deterrent to the break-in process) or some other type of negligence in the property owner’s part.
- Fans of opposing teams watching a game on screen at a restaurant/bar become physical while rooting for their respective teams and fists begin to fly. Victims file suit against the restaurant owner as well as the building owner for negligence for not preventing an unsafe environment.
- A hired property manager is doing his rounds collecting rent from residents on a residential property. A tenant opens the door and unceremoniously punches the property manager in the face. Property manager sues the landlord for negligence and for not warning him of violent tendencies of said tenant.
Why you should avoid it
If you own a restaurant or run any establishment that serves customers, assault and battery coverage is critical. This includes any establishment that by its nature has an atmosphere that can potentially turn violent or rowdy – restaurants, bars, bowling alleys and entertainment venues. If you own a property that is leased out to such an establishment, as the landlord – you too are at increased risk of experiencing an assault or battery related claim.
However – pretty much anyone who owns a business or property, even a property that is entirely residential, is potentially at risk of an assault or battery incident on their leased or owned premises. Besides for tenants, owners can potentially be held liable as well if there were certain responsibilities the landlord was negligent or was alleged to be negligent in.
It is important to note that even if you are not negligent and someone unfairly or incorrectly files suit against you, you will still need to defend yourself in court. Defense costs alone can be sky high. Your insurance policy will cover your defense costs only if that which is alleged by the claimant is covered by your policy.
The unfortunate results of an assault or battery incident can be catastrophic and without proper insurance can be extremely costly and potentially devastating for a property/business owner to handle without insurance. It is therefore important coverage for most businesses and property owners.
How to make sure you have it
Some insurance companies will automatically exclude this coverage with no option to include it. (You can sometimes add the coverage with a separate policy, but it’s usually more worthwhile to just get one policy that will include it.)
Other insurers may exclude on a case by case basis. In these cases, it will likely vary based on location or prior claims history. High crime neighborhoods or venues that are more likely for such claims to occur are typically where insurers are more likely to exclude this coverage.
Some may exclude by default but can include it upon request – often for no additional premium. All one needs to do in those situations is to request it. Some may have an additional premium to include. With insurance, in general, it’s important to note that sometimes a little more in premiums can get you a lot more in terms of increased protection, and this coverage is often that way as well.
As always, it is important that you discuss the specifics of your circumstances with a qualified insurance professional who can guide you on the best way forward based on the specifics of your situation.
Questions and comments are welcome. Please leave them in the comments section below or contact me directly.
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