Premises Liability in Florida

A premises liability claim in Florida arises when someone is injured on property you own, lease, or control. Slip-and-fall injuries, swimming pool drownings, inadequate security, and structural defects all create potential liability for the property owner. Florida’s two-year statute of limitations under HB 837 gives plaintiffs less time to file, but the claims that do get filed often involve serious injuries and large verdicts.

The asset protection analysis for premises liability depends on the type of property involved. Commercial property owners carry different insurance than residential owners. The property itself is often at risk when it is not the owner’s homestead. Verdicts above insurance limits create personal exposure that exemptions alone may not cover.

How Premises Liability Differs from Other Personal Injury Claims

Florida premises liability law imposes a duty of care that depends on the injured person’s status on the property. An invitee (a store customer, a tenant, a business visitor) is owed the highest duty. The property owner must maintain reasonably safe conditions, inspect for hazards, and either repair or warn of dangers. A licensee such as a social guest is owed warnings about known hidden dangers. Trespassers are owed freedom from intentional harm, and one detected within 24 hours must also be warned of known hidden dangers. Children may trigger the attractive nuisance doctrine.

Premises liability differs from other personal injury claims because the property itself is central to both the liability and the asset exposure. A car accident defendant’s car is rarely a valuable asset. A premises liability defendant’s rental building, retail space, or commercial warehouse may be the most valuable thing they own, and it is typically not homestead-protected property. A judgment creditor can record a lien against non-homestead real estate and eventually force a sale.

Florida’s modified comparative negligence system under HB 837 bars recovery when the plaintiff is more than 50% at fault for his or her own harm. HB 837 also creates a presumption against liability for criminal acts committed on the premises by third parties. It applies where the owner of a multifamily residential property with at least five dwelling units on one parcel substantially implements specified security measures: cameras, lighting, locked entries, and CPTED assessments. These changes reduce but do not eliminate exposure.

Insurance Coverage by Property Type

A commercial general liability (CGL) policy covers bodily injury and property damage claims arising from business operations on the insured premises. Standard CGL policies generally carry limits of $1 million per occurrence and $2 million aggregate. Larger commercial operations often carry higher limits or add excess liability layers. CGL policies typically exclude intentional acts, contractual liability assumed under certain agreements, and pollution events.

Landlords typically carry a landlord or rental dwelling insurance policy rather than a standard homeowners policy. These policies include liability coverage for injuries on the rental property, but limits are often lower than commercial policies. A landlord with multiple rental properties may carry a separate policy for each or a blanket policy covering all properties.

When someone is injured on the owner’s primary residence, the homeowner’s liability coverage applies. Standard homeowners policies often include $100,000 to $300,000 in liability coverage. That amount can be inadequate for a serious injury.

An umbrella insurance policy provides additional liability coverage above the underlying CGL, landlord, or homeowners policy. Umbrella coverage typically starts at $1 million and is available in increments up to $5 million or more. Annual premiums are low relative to the coverage provided. For property owners with multiple assets exposed to premises liability claims, umbrella coverage adds a layer that a verdict must exhaust before it reaches personal assets.

When Personal Assets Become Exposed

A premises liability verdict that exceeds the combined insurance coverage creates a judgment against the property owner personally. That judgment puts every Florida civil collection tool in the creditor’s hands: garnishment, liens on non-homestead real property, asset discovery, and execution against personal property.

The property where the injury occurred is often the first target. Non-homestead real estate (rental property, commercial space, vacant lots) is vulnerable to a judgment lien and potentially a forced sale. If the property is held in the owner’s personal name rather than an entity, the creditor’s path to collection is direct.

The owner’s other non-homestead real estate is also exposed. A judgment lien recorded in any Florida county attaches to all non-homestead real property the debtor owns in that county. An owner with multiple rental properties in the same county faces lien exposure across the entire portfolio.

Florida’s exemptions protect the owner’s homestead, retirement accounts, head of household wages, life insurance cash value, annuities, and tenants by the entireties property. A premises liability judgment cannot reach these assets, but the exemptions have limits. Homestead protection stops at the constitutional acreage limits, and head of household wages above $750 a week can be reached only where the earner signed a separate written waiver. Nothing in the exemptions covers unprotected bank accounts, individual brokerage accounts, non-homestead real estate, or business assets held outside a properly structured entity.

Structuring Property Ownership to Limit Exposure

Holding each property in a separate LLC is the most common asset protection strategy for property owners facing premises liability risk. An LLC creates a legal separation between the property and the owner’s personal assets. If a premises liability claim arises from an injury on property held in an LLC, the plaintiff’s recovery is generally limited to the assets inside that LLC, primarily the property itself and any associated accounts.

A separate LLC for each property also isolates the liability, so a claim arising from one building does not expose the others.

The protection depends on maintaining the LLC as a genuine separate entity. Commingled funds, missing books, and personal use of the LLC account are the evidence a creditor gathers for a claim to pierce the corporate veil. Florida courts disregard the LLC’s separate existence only where the owner also used the entity to mislead or defraud a creditor.

A multi-member LLC offers an additional layer through charging order limitations. If a creditor obtains a personal judgment against an LLC member, not against the LLC itself, the creditor’s remedy is limited to a charging order against the member’s distributions. The creditor cannot force a sale of LLC assets or take over management. That limit is weaker in a single-member LLC, where a court can order the member’s interest sold once it finds that charging order payments will not satisfy the judgment in a reasonable time.

Offshore Protection for Liquid Assets

For property owners whose liquid assets exceed Florida’s exemption thresholds, an offshore trust provides protection that domestic structures cannot match. A Cook Islands trust holds the assets through a foreign trustee no Florida court can direct, though the court still has authority over the owner, who can be ordered to bring them back. Cook Islands law gives a Florida judgment no effect of its own. The creditor has to start over there, where proof that the transfers into the trust were fraudulent must meet a beyond-reasonable-doubt standard, inside a shortened statute of limitations.

Offshore trust planning is most effective before any claim arises. Property owners who face recurring premises liability exposure, including landlords, commercial operators, and hospitality businesses, benefit from establishing the trust while no claims are pending. A Cook Islands trust costs about $21,000 to establish. The trustee’s roughly $5,000 annual fee begins the following year. The structure makes sense when total assets reach $1 million or liquid assets reach $500,000.

Even after a claim is filed, an offshore trust can strengthen the settlement position for liquid assets. The risks increase and contempt exposure is higher, but the structure remains available. Florida asset protection planning after a premises liability claim follows the same principles that apply to any post-judgment scenario. Exempt-asset conversions remain permitted, though a creditor has four years to challenge one made to hinder, delay, or defraud. Entity restructuring faces scrutiny, and offshore planning trades higher contempt risk for stronger settlement leverage.

How Premises Liability Claims Typically Resolve

Most premises liability claims settle before trial. The settlement amount reflects the plaintiff’s injuries, the strength of the liability evidence, the defendant’s insurance coverage, and the defendant’s visible asset exposure beyond insurance.

A property owner with adequate insurance, properly structured entities, and protected personal assets presents a difficult collection target. The plaintiff’s attorney evaluates what can actually be recovered, not just what the injuries are worth. When the defendant’s assets are well-protected, the rational settlement range drops because the plaintiff’s practical recovery is largely limited to insurance proceeds.

A property owner with exposed personal assets faces the opposite pressure. The plaintiff’s attorney knows that a judgment above insurance limits can reach unprotected bank accounts, investment properties, and other non-exempt assets. That knowledge increases the settlement demand and weakens the defendant’s negotiating position.