Picture this: A restaurant owner slips on his own freshly mopped floor—he had forgotten to place the warning sign. A customer files a liability claim. The insurer declines, citing lack of "reasonable care." The matter lands in court.

Now what?

we often see this grey area unfold—where courts are asked to interpret a phrase that seems simple but can make or break a claim: “reasonable care.”

Let’s unpack what it really means—and what the insurance brokers must help their clients understand.

What Exactly Is “Reasonable Care”?

“Reasonable care” is not about being perfect—it's about being prudent and practical.

In insurance, it means taking all sensible precautions to prevent damage, injury, or loss. It's what a responsible person would do, given the situation. Think safety signage, routine maintenance, staff training—basic but essential.

Courts don’t expect clients to eliminate all risks—but they do expect that foreseeable risks are managed.

How Courts Actually Judge It?

Courts don’t use hindsight. They ask: “What could reasonably have been foreseen before the incident?”

Take this real example:

Case Reference: In General Accident Fire and Life Assurance v. Tanter (The Zephyr), a ship’s mechanical failure didn’t lead to denial of a claim because the issue wasn’t apparent or predictable. The court said the owner had taken reasonable care—even if things went wrong.

The key? Documented, reasonable precautions taken before the loss—not after.

Real-Life Scenarios to Learn From

✅ Good Practice: A factory keeps daily maintenance logs and safety drills. An accident occurs despite this. The court sees a "culture of care"—claim is upheld.

❌ Negligence: A hotel ignores faulty wiring complaints. Fire breaks out. No records of inspection. The insurer and court call it negligence—claim denied.

It’s not just what you do—it’s also what you record.

Insurance Broker’s Role: Prevention Is Protection

As a insurance broker, you’re more than a middleman—you’re your client’s risk advisor.

👉 Encourage clients to:
- Conduct regular safety checks
- Maintain records (photos, logs, reports)
- Train staff and document it
- Treat “reasonable care” as an ongoing mindset, not a formality

When a claim comes, this preparation becomes their best defense.

Final Word: Be Ready Before Trouble Knocks

Insurance covers the unexpected. But to stay protected, your clients must show they acted responsibly when things were still running smoothly.

So next time you're reviewing a client’s liability coverage, ask:
Can they prove they took “reasonable care”?
If not, it’s time to step in.