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How Parking Signage Can Reduce Premises Liability

How proper parking lot signage reduces the chances of premises liability claims

A stop sign stands against a background of a green trees.

Liability lawsuits can cause serious trouble for small and medium-sized companies. Many of the cases brick-and-mortar businesses face involve premises liability. According to the law, property owners or businesses occupying the property may be liable for accidents that happen there.

These cases require the plaintiff to prove negligence on the part of the property owner or business operator. If they can do so, the owner or business operator may have to pay damages, cover medical costs and provide compensation for pain and suffering.

In simple terms, a company has a duty to create a safe environment for patrons and visitors. Failure to do so can constitute negligence. Some examples of negligence could include icy sidewalks, the lack of safe walking space, broken glass or other unsafe conditions.

Parking lots are another common area of concern for business owners. Though state laws vary, most require clear markings and signage. Accident victims may claim negligence if your business does not provide these basic markings and directions. Here is how parking lot signs and markings can help you avoid premises liability claims.

When are parking lot owners subject to premises liability claims?

Premises liability claim laws can vary by state. For example, some states have comparative negligence rules. In these places, companies may have to pay a percentage of the damages based on the percentage of their fault in the case.

In other states, customers or others on the property for a purpose may have more rights than those who are trespassing or using the lot with no intention of visiting the business. If a business lacks security or adequate lighting, these factors could also influence the outcome of cases involving nighttime accidents or car break-ins.

Circumstances may vary, but business and property owners may be held responsible for parking lot incidents if they have poor signage or inadequate maintenance.

Using parking lot signage to protect yourself from premises liability claims

One of the easiest steps to reduce liability is to use proper parking lot signage. In many cases, traffic and parking lot-specific signs can help reduce liability and ensure compliance with local laws. These markers can also improve safety for drivers and pedestrians visiting the business since they will have clear directions for moving safely through the area.

Here are five areas where parking lot signage can help improve safety and reduce liability.

Creating safe intersections

A stop sign displayed in a parking lot.

Intersection accidents are very common. They can also take place in parking lots, especially if the lot has no clear signage warning drivers to stop or yield to other vehicles or pedestrians.

Drivers may claim they did not know they had to stop or yield because no signs were telling them to do so. Stop signs at parking lot intersections can provide drivers with such directions and also reduce liability for property owners and businesses. Even if a driver or pedestrian tries to use premises liability to make a claim, a good lawyer can claim the other parties were liable because they failed to obey the signs.

Clearly designating parking areas

Multiple designated parking areas on side of business.

Clearly defined parking areas are important for safety. However, designated parking areas are also required to comply with other laws, such as those covering accessibility.

Clearly marked parking areas create lanes for vehicle traffic. Usually, drivers use these lanes to move through the lot. This organization limits confusion and makes drivers and pedestrians aware of the traffic flow.

The Americans with Disabilities Act (ADA) guarantees accessibility for people with mobility issues or other limitations. In parking lots, the ADA requires well-marked spaces with clearly visible and easy-to-understand accessible parking signs. Not only can a lack of signage lead to premises liability lawsuits if someone gets injured, but it can also lead to legal action related to the ADA.

No parking signs can also be important for maintaining a safe place for pedestrians and visitors to walk. These signs can also help businesses comply with local safety ordinances. For example, some jurisdictions require space for emergency vehicles around public buildings. In fact, in some cities, you may need to have fire lane signs to reserve space for first responders.

Controlling driver speed

A black and white 5 mph parking lot speed limit sign.

Speed can play a role in safety and liability. Businesses can reduce liability by clearly posting speed limit signs. Ideally, drivers will obey these limits, creating a safer environment for other drivers and pedestrians.

If they do not obey the speed limit, a court could hold the speeding driver responsible for an accident, damage or injuries, limiting the chances of premises liability claims.

Directing traffic flow

Parking lots can be confusing for drivers and pedestrians. The areas often lack the intuitive and familiar layout of sidewalks and streets. Directional traffic signs can guide drivers and pedestrians alike.

For instance, one-way signs can improve traffic flow and reduce confusion and risk in narrow parking lanes. No-entry and exit signs can likewise bring order to the lot and reduce the risk of two cars meeting head-on.

Creating safe crosswalks

A yield-to-pedestrians crosswalk sign displayed in the middle of a street crosswalk.

In 2021, pedestrian deaths increased 12.5% from 2020. Pedestrians entering a business from the parking lot likely have to cross lanes where vehicles are driving. You can create designated areas using road markings and pedestrian crosswalk signs.

If you put signs at all designated crossing areas, visitors will feel safer walking from their car to the business. By designating safe areas, you may also limit liability by creating a safe environment with clear areas for pedestrians.

How to respond when a premises liability claim is made

Signage and other factors can affect premises liability claims. While property owners and operators need to create safe conditions for visitors, visitors need to take reasonable care as well.

If faced with a premises liability claim, the first step is to decide if conditions in the lot caused the accident or injury. If you have signs, markings and directions posted around the lot, you can assess whether or not the parties followed this guidance when the incident happened.

Business insurance may cover liability claims. It is best to contact your insurer early to verify coverage and provide the details of the case. Insurers will often investigate and assess the validity of the claim. Sometimes, they may use their own lawyers to argue the case.

If the insurance does not cover the incident, you need to connect with a lawyer who can represent you.

Clear signs, a well-maintained surface and fresh parking lot surface markings can help visitors navigate your lot. After an accident, these features may help you avoid legal liability, such as premises liability lawsuits.

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