Slip and fall accidents are among the most frequent liability claims in the real estate sector, occurring everywhere from commercial parking lots to residential complexes. These incidents are more than just an inconvenience; they can lead to expensive lawsuits, higher insurance premiums, and lasting reputational damage.
In many cases, claims are filed close to the two-year statute of limitations period. This timing is often strategic, hoping that an owner will no longer have the records needed to prove they took reasonable preventative actions. This is why proper incident documentation is not just a formality—it is a critical shield against uncertainty.
Documentation is your first line of defence, showing that you acted promptly and responsibly to mitigate hazards.
The Hidden Risks of Poor Documentation
Failing to maintain detailed records creates significant vulnerabilities during a liability dispute:
- Incomplete Evidence: Insurers require detailed reports to defend allegations of negligence. Missing information makes it much harder to prove you took reasonable steps to prevent hazards.
- Contractor Liability: While maintenance contractors often share liability, owners must ensure they have evidence of the contractor’s liability insurance and that the owner is named as an “Additional Insured”.
- Oversight Costs: Without clear indemnity language in contracts and thorough incident reports, property owners may be forced to bear the full cost of settlements and deductibles.
CASE STUDY: A $75,000 Oversight
To illustrate the high cost of poor documentation, consider a retail property that recently faced a $75,000 settlement after a customer slipped on a freshly mopped floor.
While the cleaning contractor failed to place warning signs, the property manager mistakenly assumed the contractor’s insurance would cover the claim. However, because the contract lacked indemnity language and the incident report was incomplete, the property owner’s insurer had to bear the full cost. This resulted in an immediate deductible payment and premium increases upon renewal.
The Lesson: Thorough documentation and clear contract language are essential to protecting your bottom line.
What to Include in an Incident Report
When an incident occurs, time is critical. Your report should create a clear timeline and capture conditions before they change. Ensure your team records:
- Precise Location: The exact date, time, and spot where the incident occurred.
- Environmental Conditions: Detailed notes on lighting, weather, floor moisture, and the presence of warning signage.
- Preventative Actions: Documentation showing if snow was removed or icy areas were sanded in a reasonable time.
- Visual Proof: Visual evidence is powerful; take multiple photos and videos from different angles to provide context.
- Witness Accounts: Collect names and contact details, as their accounts can support your version of events.
Practical Tips for Property Managers
To turn potential liabilities into manageable challenges, property managers should adopt a proactive approach to risk:
- Standardize and Train: Use consistent templates to ensure no details are missed, and train staff to complete them accurately and promptly.
- Maintain Logbooks: Keep detailed logs of walkthroughs and maintenance; if these tasks are third-partied, require the contractor to provide their own logs and photos.
- Review Service Agreements: Ensure all contracts include indemnity clauses and insurance requirements, including “Additional Insured” status in favor of the owner.
- Consult Your Broker: Reporting an incident to your broker does not mean you are making a claim; your advisor can review reports and recommend next steps based on the potential injury involved.
By prioritizing thorough documentation and regular safety audits, you demonstrate due diligence and create a safer environment for every tenant and visitor.
If you have questions specific to your property, please reach out to your Navacord Advisor.
Local Touch. National Strength. Let us help you manage your risk. The information contained herein is general in nature and general insurance description only. The information is not intended to be insurance advice; nor does it amend, modify or supplement any insurance policy. Consult your actual policy or your broker for details regarding terms, conditions, coverage, exclusions, products, services and programs which may be available to you.
