Michigan Lawmaker Aims to Cut Business Insurance Costs by reinstating ‘Open and Obvious’ doctrine
Shepherd, MI – Michigan State Representative Jerry neyer has introduced House Bill 4582, a legislative effort aimed at considerably reducing liability insurance costs for businesses across the state.The proposed bill seeks to reinstate the “Open and Obvious” doctrine, which previously protected property owners from liability in cases where hazards were readily apparent.
Neyer, A Republican representing Shepherd, Argues that the Michigan Supreme Court’s decision in 2023 to abolish this standard has led to soaring insurance costs due to increased lawsuits and uncertainty for business owners.
Restoring Balance: The Commercial Premises Liability Act
House Bill 4582,known as the Commercial Premises Liability Act,Aims to restore a balanced approach to premises liability law in Michigan.
The legislation Proposes that property owners should not be held responsible for protecting invitees from dangers that are open and obvious. neyer Emphasizes that businesses are facing unsustainable insurance costs because of the current legal climate.
“There Is A Pressing Need To Provide Clarity And Balance In Our Rules And Regulations So That We Can Ensure A Fair And Predictable Legal Framework for All,” Said Neyer. “Businesses Shouldn’t Be Sued because Somebody Lacks Common Sense.”
The Impact of Eliminating the “Open and Obvious” Doctrine
Before the elimination of the “Open and obvious” doctrine, Michigan businesses had a legal defense against certain liability claims. The Doctrine acknowledged that individuals have a responsibility to protect themselves from risks that are easily recognizable.
As the Doctrine’s Abolishment, Businesses Have Reported a significant increase in liability claims, Resulting in higher insurance costs and greater financial uncertainty.The Michigan Chamber of Commerce has been a vocal advocate for reinstating the Doctrine, Citing its importance for maintaining a competitive business habitat.
Pro Tip: Business Owners Should Document All safety Measures Taken On Their Properties, Nonetheless Of the Legal Standard, to Mitigate Potential Liability.
Legislative Path and Potential Outcomes
House Bill 4582 has been referred to the House Judiciary Committee for consideration. The Committee will review the bill, Hear testimony from stakeholders, And perhaps amend the legislation before a vote.
If Passed By The House, The Bill Would Then Move To The Senate For Consideration. The Reinstatement Of The “Open and Obvious” Doctrine Could Provide Significant Relief to Michigan Businesses Struggling With High Insurance Costs.
The outcome will depend on the level of support from both parties and the ability to address concerns raised by opponents of the bill.
How Do michigan Businesses Compare to Other States?
Understanding the landscape of business insurance costs requires a look at how Michigan compares to other states. Here’s a simplified table:
| State | Legal Doctrine | Average Insurance Cost (per year) |
|---|---|---|
| Michigan (Current) | No “Open and Obvious” | $12,000 |
| Michigan (Proposed) | “Open and Obvious” Reinstated | $8,000 (Projected) |
| Ohio | “Open and Obvious” | $7,500 |
| Indiana | “Open and Obvious” | $8,200 |
Understanding Business Liability Insurance
Business Liability Insurance Is A Critical Component Of Risk Management For Companies Of All sizes. It Protects Businesses From Financial Losses Resulting From Bodily Injury,Property Damage,And other Types Of Claims.
There Are Several Types Of Liability Insurance, Including General liability, Professional Liability (Errors And Omissions), And Product liability Insurance. The Cost Of Liability Insurance Varies Depending On Factors Such As The Size Of The Business, The Industry, And The Extent Of Coverage.
The Insurance details Institute Offers Detailed resources On Understanding Business Insurance And Managing Risk.
Frequently Asked Questions About Michigan’s “Open and Obvious” Doctrine
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How Do You Think This Change Could Impact Michigan Businesses?
