ISS BLOG – A Beefy Tenant-Injury Payout Underscores the Importance of Self-Storage Maintenance and SafetyISS BLOG – A Beefy Tenant-Injury Payout Underscores the Importance of Self-Storage Maintenance and Safety
A recent multi-million-dollar judgement against a self-storage giant should serve as a wake-up call to the rest of the industry about the financial risks of slip-and-fall claims against a facility. Fortunately, with an effective site safety and maintenance strategy, these can be largely avoided at a much smaller cost.

While self-storage facilities are generally considered low-risk environments, they can unexpectedly become targets for customer lawsuits, particularly bodily injury claims. According to the Insurance Information Institute, slip-and-fall accidents make up a big chunk of the allegations faced by businesses. Annually, these claims end up costing billions of dollars in settlements, legal fees and higher insurance premiums. Besides the financial strain they cause, these incidents undercut facility operators’ ability to keep their properties safe for customers and employees.
Industry real estate investment trust Public Storage took a blow earlier this month when a New Jersey jury awarded a woman $2.5 million after she fell in an entranceway at one of their facilities in 2020 and suffered a broken elbow that required multiple surgeries. An engineering expert testifying for the plaintiff said the step leading to the entrance was in disrepair and not up to code, causing the accident.
Sometimes slip-and-fall lawsuits aren’t even legitimate. A plaintiff will say they got hurt because of unsafe conditions on your premises, but the story is exaggerated or made up in the pursuit of easy money. Scammers are crafty. If they spot something is amiss at your self-storage facility, they’ll create a scenario that sounds plausible enough to convince a jury that a safety risk did exist.
It Can Happen to You … and It’s Costly
Self-storage operators face unique challenges when it comes to liability risk, which makes it all the more important to effectively manage site safety and facility maintenance. As the recent jury award indicates, failing to do so can be very expensive.
If this can happen to one of the country’s largest self-storage operators, then the smaller independents, which make up more than 65% of the industry, need to be aware of these risks. While Public Storage can easily absorb the financial impact of a multi-million-dollar payout, this same scenario would put most other companies out of business. Thankfully, awards of this size are rare. According to Adam S. Kutner, a Las Vegas-based injury attorney, the average slip-and-fall claim usually settles for $10,000 to $50,000.
Even if a self-storage operator successfully fends off a liability claim, that victory comes at a cost. According to MiniCo Insurance Agency, the average fee to defend a facility against a lawsuit can range from $10,000 to $25,000. This can escalate depending on the complexity and severity of the case. These incidents pose other financial risks to a self-storage business such as fines and compliance costs, increased insurance premiums, and lost occupancy and revenue due to a tarnished reputation within the community.
Protect Yourself
Fortunately, these risks can be mitigated by embracing effective strategies that deal with potential hazards that could lead to a claim. Conduct regular inspections to address issues such as malfunctioning gates, faulty lighting fixtures, uneven pavement and sharp edges on rollup doors. Create a policy for weather-related hazards like slippery walkways and steps due to ice, snow or rain. Remain diligent about adequate follow-up and execution. Adequate insurance that covers the cost of a judgement against your facility can also provide protection.
Bodily-injury claims against your self-storage business pose a significant financial risk, potentially resulting in tens of thousands of dollars in legal fees, settlements and increased insurance premiums. But they can be avoided for a much smaller cost. These facts and figures underscore the danger of neglecting site safety and maintenance at your facility. By investing in proactive measures and regular inspections, you can mitigate these risks and protect your financial stability.
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