Customer gets hurt at your place of business and suddenly you are staring down a potential lawsuit. It happens more than you think. A wet floor, a loose railing, a cracked sidewalk — any of these can turn a normal Tuesday into a five-figure problem. However, this is manageable if you act fast and follow a clear sequence. Most claims settle through insurance without ever reaching a courtroom. Here is exactly what to do, what it costs, and where owners typically trip up.
Where You Stand When a Customer Gets Hurt
Every state holds business owners to a “duty of care.” That means you must keep your premises reasonably safe for visitors. When a customer gets hurt because you failed that duty — a spill you didn’t mop, a broken step you didn’t fix — you face what the law calls premises liability. The injured person can file a claim against your general liability insurance or sue you directly.
General liability insurance is not legally required in most states. However, operating without it is a serious gamble. The SBA recommends every small business carry at least $1 million per occurrence and $2 million aggregate. In most cases, your landlord or a commercial lease already requires proof of coverage before you open the doors.
How much a customer gets hurt — and what it costs you — varies widely. Here are typical settlement ranges based on injury severity:
| Injury Type | Typical Settlement | Example |
|---|---|---|
| Soft tissue (sprain, bruise) | $10,000–$25,000 | Customer slips on wet floor, twists ankle |
| Broken bone, no surgery | $25,000–$75,000 | Fall from a step, fractured wrist |
| Broken bone requiring surgery | $50,000–$150,000 | Hip fracture in a retail store |
| Back or neck injury | $100,000–$500,000 | Cervical spine damage from a fall |
| Traumatic brain injury | $250,000+ | Head strike on exposed hardware |
About 95% of premises liability claims settle out of court. As a result, most owners never see a courtroom. But the clock starts ticking the moment a customer gets hurt. Each state sets its own statute of limitations for personal injury claims.
| State | Filing Deadline | Notes |
|---|---|---|
| Kentucky | 1 year | Shortest in the nation |
| Florida | 2 years | Shortened from 4 years in March 2023 |
| Texas | 2 years | 10-year statute of repose |
| California | 2 years | Or 1 year from discovery date |
| New York | 2.5 years | 30 months from date of injury |
| Maine | 6 years | Longest in the nation |
What to Do First When a Customer Gets Hurt (Step by Step)
1. Get them medical help. Call 911 if the injury is serious. Never delay medical care. Even for minor injuries, offer to call an ambulance. This protects the person and shows you acted responsibly.
2. Secure the scene and document everything. Block off the area so nobody else gets hurt. Then photograph the hazard, the surrounding conditions, and the injury if the person allows it. Write down exactly what happened while it is fresh. Get names and phone numbers from every witness. Save any security camera footage — many insurers require it.
3. Do not admit fault. You can say “I’m concerned about you” or “Let me get you help.” Do not say “I’m sorry, that was our fault.” Admitting liability can void your insurance coverage. For example, many policies include cooperation clauses that let the insurer deny a claim if you accept blame without authorization.
4. Call your insurance company the same day. Delayed reporting is one of the top reasons claims get denied. Your general liability policy includes a “medical payments” provision — typically $5,000 to $10,000 per person — that pays the injured customer’s medical bills regardless of fault. This quick payout often prevents a lawsuit entirely.
5. File an incident report. Create a written record with the date, time, location, weather or floor conditions, and a description of what happened. Keep this on file permanently. If a customer gets hurt and files a claim months later, this report becomes your best evidence.
6. Fix the hazard. After you have documented the scene, correct the dangerous condition immediately. Leaving it in place invites another injury and proves ongoing negligence.
What It Will Cost and What to Watch For
General liability insurance is cheaper than most owners expect. The median small business pays about $57 per month. However, your industry and state change the number significantly. Here is what typical businesses pay:
| Business Type | Median Monthly Premium | Annual Cost |
|---|---|---|
| Tech / IT consulting | $27/month | $324/year |
| Retail store | $58/month | $696/year |
| Restaurant / food service | $125/month | $1,500/year |
| Construction / contracting | $337/month | $4,041/year |
| National average (1–4 employees) | $123/month | $1,474/year |
The biggest cost trap is being underinsured. A standard policy covers $1 million per occurrence. When a customer gets hurt badly — a back injury, a head strike — settlements can exceed that limit fast. Many owners carry a commercial umbrella policy for an extra $1 million to $5 million of coverage. Typically, umbrella policies cost $40 to $80 per month for a small business.
Another common mistake: not keeping maintenance records. When a customer gets hurt and sues, the first thing an attorney requests is your cleaning schedule, inspection logs, and repair history. No records means no defense. Courts treat missing documentation as evidence of negligence. For example, a restaurant that cannot show a floor-mopping log has a much harder time defending a slip-and-fall claim.
📨 Get Free Business Insurance Guides Alerts
Free · No spam · Unsubscribe anytime
Also watch for these traps: letting your policy lapse even briefly, skipping incident reports for “minor” injuries, and destroying security footage. Each of these can turn a covered claim into an out-of-pocket disaster.
When to Call Your Agent or an Attorney
Call your insurance agent immediately after any incident where a customer gets hurt. They will walk you through the claims process and assign an adjuster. For minor injuries that settle through MedPay, you may never need a lawyer. However, if the injured person hires an attorney, you need one too.
Hire a premises liability attorney if: the injury is severe (broken bones, head trauma, surgery), the customer’s demand exceeds your policy limits, or you receive a formal lawsuit filing. In most cases, your general liability policy pays for your legal defense — including attorney fees, court costs, and expert witnesses — in addition to your coverage limits. Confirm this with your agent before the situation arises.
When a customer gets hurt and threatens to sue on the spot, stay calm. Do not negotiate directly. Hand everything to your insurer. That is exactly what you pay premiums for. If you do not currently have a relationship with a local business insurance agent, the Insurance Information Institute and your state Department of Insurance both offer directories. Confirm exact coverage requirements and pricing with a licensed insurance agent and your state before making any changes.
Frequently Asked Questions
What if a customer gets hurt but I don’t have general liability insurance?
You are personally liable for all medical bills, legal fees, and damages. A single slip-and-fall settlement averages $30,000. Severe injuries can reach $500,000 or more. Without insurance, that money comes directly from your business assets or personal savings. Many small businesses cannot survive an uninsured claim of this size.
Does my general liability policy cover a customer gets hurt outside my building?
Typically, yes. Your policy covers injuries on any premises you own, lease, or control — including sidewalks, parking lots, and outdoor seating areas. However, verify your policy’s premises definition with your agent. Some policies exclude shared spaces in multi-tenant buildings unless specifically endorsed.
Should I pay a customer’s medical bills out of pocket to avoid a claim?
No. Let your insurance handle it. Your policy’s medical payments coverage (usually $5,000–$10,000 per person) exists for exactly this purpose. Paying out of pocket can be seen as admitting fault. It also creates no paper trail for your insurer if the customer later files a larger claim.
Compare Quotes for Your Business
What you pay depends on your trade, your state, your revenue, and your claims history. The only way to know your real price is to compare several quotes side by side.
Find Your State’s Insurance Rules →
Sources & How to Verify
The information on this page is drawn from official government and industry sources. Insurance requirements, premiums, and state rules change, so always confirm the exact figure with your state, a licensed agent, or the authority source.
- U.S. Small Business Administration: sba.gov — federal small-business insurance guidance
- Insurance Information Institute: iii.org — neutral premium and coverage data
- NAIC: naic.org — state insurance regulation data
- U.S. Department of Labor: dol.gov — workers’ compensation overview
- Your state DOI, workers’ comp board, and contractor-licensing board: search “[your state] department of insurance” or “[your state] workers comp” for the exact law and forms
Content last reviewed June 2026. If you notice outdated information, please contact us.
Related Guides
- Business Insurance by State (All 51 Jurisdictions)
- More in This Category
- Insurance by Profession
- Coverage Types Explained
- Comparison Guides
- Business Insurance Glossary
Informational only — not insurance, legal, or tax advice. Business Insure Guide is an independent educational resource, not an insurance company, broker, law firm, or tax advisor, and this page does not provide insurance, legal, or tax advice. Requirements, premiums, and rules vary by trade, state, and insurer, and change over time. Always confirm the exact coverage, requirement, and price with a licensed insurance agent and your state before you buy. Verify with a licensed professional for advice about your specific situation.