These costs don’t stay with property owners. As BOMA members, we know that property costs get passed down the chain, causing tenants, small businesses, and residents to see higher costs, in the form of higher rents and operating costs. Vendors and contractors also face more legal exposure and raise their rates accordingly, compounding costs up and down the chain. After the Michigan Supreme Court overturned the Open and Obvious Doctrine, property liability insurance skyrocketed for companies across the state. Since 2023, companies have reported double digit year-over-year increases in commercial liability insurance. Thomas Duke Company saw a 24.4% increase in liability insurance from 2023 to 2024 alone. Insurance companies are afraid to litigate during premises liability suits and instead are settling cases that they would have won under Open and Obvious. This causes insurance rates to increase, and companies have seen deductibles that more than doubled. House Bill 4582 restores the Open and Obvious Doctrine to the standard in place prior to 2023. The bill returns predictability and common sense to premises liability law and reduces risk exposure for properties in Michigan. It would slow – and hopefully bring back to pre-2023 normalcy – insurance rates and allow owners, managers, and tenants to make maintenance and investment decisions without constant rising rates and unmitigated legal exposure.
Made with FlippingBook - Share PDF online