Are Businesses Always At Fault For Slip-And-Fall Accidents? Could a Fall Break Your Small Business?

As a small business owner, you need to cover all of your bases, and that means keeping sharp eyes on things that may seem a bit fishy.

With the rise of slip and fall scams, one lawsuit against you could cost you financially and cause problems with your business.

It's not only important to have insurance in case a legitimate slip and fall case comes your way, which does happen, but you also need to notice warning signs to look for and the right avenues to follow if you suspect fraud.

What is a slip and fall case?

Sometimes a customer will legitimately fall in your business and you may be liable.

Maybe your sidewalk is icy or a spilled drink was not properly cleaned up. If someone falls on your property due to your negligence and accrues injury, you can be liable.

However, over the past years, fraudulent slip and fall cases have been on the rise.

According to a 2012 National Insurance Crime Bureau (NICB) report, the bureau reviewed slip-and-fall questionable claims referred to them from Jan. 1, 2010 – Dec. 31, 2011.

In 2010, there were 1,944 referrals, with that number jumping in 2011 to 2,168, meaning an uptick of 12 percent.

It is also important to keep in mind that groups of scam artists are working together to work their way around certain areas, perhaps sending in different people but usually with the same methods.

Often two people work together but go in separately.

One falls and the other claims to witness the event. It's important to have cameras in your small business so falls can be documented and it's easier to decide if there is fraud involved or not.

Look for Red Flags

Certain signs show up more in fraudulent slip and fall cases than in legitimate ones.

Look for these red flags if you suspect fraud:

• Only soft tissue damage claims. That translates to no broken or fractured bones, nothing apparent on x-rays.

• Claims for worker's comp for an employee who you don't know very well, maybe someone new, or an employee who you've been having some problems with.

• Lack of witnesses. If this happens in a place with a good amount of people but only one person (or no one) steps forward, it could be a red flag.

• If it happens in a place where your camera does not reach, like stairwells or bathrooms.

What to do?

If you feel the claim is legitimate, have your insurance take care of it. If you or your insurance company feels there is fraud involved, go through the proper channels of investigation.

Often it is easy just to pay, but that can hurt your business and the financial damages can be quite severe. You don't want to pay if the claim is false.

The big question may be ... are businesses always at fault for slip-and-fall accidents?

The big answer may be more difficult, but if you suspect something, it doesn't hurt to take a harder look.

Good luck and keep covered either way.