In Short
- Businesses that control premises may be liable if a visitor is injured due to unsafe conditions.
- The Occupiers’ Liability Act 1957 requires occupiers to take reasonable steps to keep lawful visitors safe.
- Liability depends on whether the business failed to manage foreseeable risks on the premises.
Tips for Businesses
Carry out regular inspections of your premises and address hazards such as spills, damaged flooring or unsafe shelving promptly. Maintain written records of safety checks, maintenance and incident reports. Train staff to identify and manage risks and ensure warning signs are used where hazards cannot be immediately resolved. Notify insurers and seek legal advice if an incident occurs.
Summary
This article explains how occupiers’ liability operates in England and Wales when a visitor is injured on business premises. It outlines the legal duty under the Occupiers’ Liability Act 1957, who qualifies as an occupier, and the steps businesses should take to manage risks and respond to accidents. Prepared by LegalVision, a commercial law firm specialising in advising clients on disputes and litigation, it provides a practical overview of liability and risk management for businesses operating premises.
On this page
- Why Does Occupiers’ Liability Matter in Accidents?
- What Is the Legal Framework for Occupiers’ Liability?
- Who Owes the Duty and Who Is Protected?
- What Does the Duty of Care Require in Practice?
- What Responsibilities Do Businesses Have for Managing Risk?
- What Types of Accidents Can Give Rise to Liability?
- What Premises Does Occupiers’ Liability Apply To?
- Can a Visitor Bring a Claim?
- How Should a Business Respond If Someone Is Injured?
- Why Is Legal Advice Important in Occupiers’ Liability Claims?
- Key Takeaways
- Frequently Asked Questions
Businesses will often allow both customers and other visitors onto their premises. For instance, you will allow customers into your shop, restaurant or hotel. However, accidents can unfortunately happen and may cause serious injury.
When a customer is injured on your business premises, your business may face liability. This could be under occupiers’ liability law (and/or wider negligence laws), and you could face significant legal claims. The legal framework focuses on who controls the premises and who must keep them reasonably safe.
This article introduces how occupiers’ liability operates in England and Wales and what it means for your business when an injury occurs.
Why Does Occupiers’ Liability Matter in Accidents?
Individuals may have grounds to make a compensation claim if they are injured on your property. Occupiers’ liability considerations are crucial when an injured person brings a claim. It provides a legal framework that courts will use to decide whether a business acted reasonably and whether compensation is payable to the injured party.
Put simply, occupiers’ liability determines when and in what scenarios a person or business must compensate someone injured on premises they control.
If liability arises, the law requires the occupier to compensate the injured person for their loss. Claims can involve:
- compensation payments;
- legal costs; and
- time spent dealing with insurers and disputes.
What Is the Legal Framework for Occupiers’ Liability?
Occupiers’ liability applies where someone suffers injury on premises controlled by another person or business. The main legislation governing this area is the Occupiers’ Liability Act 1957 (the 1957 Act), which forms part of the wider law of negligence. The 1957 Act applies to lawful visitors, but injuries to non-visitors are governed by the Occupiers’ Liability Act 1984.
The 1957 Act sets out the duty of care owed to lawful visitors and governs how courts assess liability after an accident. The law focuses on who controls the premises rather than who owns them.
A person or business may qualify as an occupier if they manage safety or control all or part of the premises. This can include:
- business operators;
- tenants;
- landlords; or
- managing agents.
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Who Owes the Duty and Who Is Protected?
An occupier is the person or business that controls the premises. In some situations, more than one occupier may exist at the same time.
Responsibility depends on who controlled the area where the accident happened and who could take steps to reduce the risk.
The duty of care protects lawful visitors. This includes:
- customers;
- wider members of the public;
- invited guests;
- delivery drivers; and
- contractors who have permission to be on the premises.
The duty applies while visitors use the premises for the purpose for which they were allowed to be there.
What Does the Duty of Care Require in Practice?
The duty of care requires occupiers to take reasonable steps to keep visitors safe. It does not require occupiers to guarantee safety or remove every possible risk.
In practice, occupiers must keep premises in good condition and actively manage hazards that could cause injury. This can include taking appropriate action, such as:
- checking floors and walkways;
- maintaining lighting;
- securing shelving; and
- dealing promptly with spills or defects.
Courts decide what counts as reasonable by looking at the circumstances, including:
- the type of premises;
- how they are used; and
- who is expected to visit.
What Responsibilities Do Businesses Have for Managing Risk?
Businesses should manage safety in a practical and proportionate way, and ensure compliance with any applicable health and safety rules.
Staff should understand what action to take when they identify a risk. Important risk mitigation includes:
- regular inspections;
- routine maintenance;
- staff training; and
- defined processes for dealing with safety risks and potential hazards.
Written records of inspections, repairs, and incidents can play an important role if someone later brings a claim.
What Types of Accidents Can Give Rise to Liability?
Occupiers’ liability claims frequently result from common and foreseeable risks. These risks can include slips on wet floors without warnings, trips on uneven surfaces or loose cables, falls caused by damaged stairs or handrails or injuries from poorly stacked items.
A business does not become liable simply because an accident happens. Liability arises only where the business failed to take reasonable care and caused the injury.
Courts will examine:
- whether the risk was foreseeable;
- whether the business knew or should have known about it; and
- what steps does the business take to prevent harm.
What Premises Does Occupiers’ Liability Apply To?
Occupiers’ liability applies to most premises that visitors can access, such as shops, restaurants or car parks. Responsibility usually sits with whoever controls the area where the accident occurred. In some cases, more than one occupier may share responsibility.
Can a Visitor Bring a Claim?
A visitor may bring a claim if they were lawfully on the premises and suffered injury because the occupier failed to take reasonable care.
In most cases, the visitor must bring a claim within three years from the date of the injury or knowledge, although some exceptions apply. However, each claim varies.
Evidence often plays an important role, such as:
- photographs;
- CCTV footage;
- witness details;
- accident records; and
- maintenance logs.
How Should a Business Respond If Someone Is Injured?
When someone is injured, the business should act and respond carefully. Staff should:
- accurately record what happened;
- preserve any relevant evidence; and
- notify insurers and legal advisors promptly.
Why Is Legal Advice Important in Occupiers’ Liability Claims?
Occupiers’ liability claims typically involve complex and detailed factual and legal issues. Courts apply the 1957 Act alongside case law, and the outcomes of a claim will often depend on a careful and nuanced analysis.
Legal advice from a litigation solicitor can help a business understand its position and manage a claim effectively.
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Key Takeaways
Occupiers’ liability law focuses on who controls premises rather than who owns them. An important duty of care applies to all lawful visitors, not only customers. Businesses must take reasonable steps to keep visitors safe, but the law does not require them to guarantee safety. It is important to understand these rules if you operate a business premises, take steps to keep your premises safe and seek urgent legal advice on your position if a claim arises.
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Frequently Asked Questions
A business does not automatically become responsible just because an accident occurs. Legal responsibility will arise if the business failed to take reasonable care and caused the injury. Courts will review the steps which the business took to manage risk.
Occupiers’ liability does not apply only to customers. It can also apply to other lawful visitors, e.g. any delivery drivers, contractors, invited guests and members of the public.
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