Lessor’s Risk Only Insurance

If you’re a commercial landlord who intends to rent your property out to other businesses, it’s a good idea to invest in insurance coverage to protect you. In some cases, your tenant may want to hold you responsible for property damage or injuries sustained in your building or on your property. In order to avoid costly legal fees and losses, lessor’s risk only (LRO) insurance (also known as landlord’s insurance) is a worthwhile investment.
Common commercial property owners who purchase LRO coverage own property portfolios that include:

• Warehouses

• Apartment buildings

• Retail complexes

• Office space

If you own property that others rent to conduct business, it’s absolutely vital that you purchase this type of insurance coverage to reduce your risk of liability in the event of an accident.

What is the difference between lessor’s risk only insurance and general liability insurance?

The key difference between the two policies is that landlord insurance applies exclusively to losses that result from a tenant’s use of the property. For example, if your tenant slips, falls and breaks a leg in the stairwell of your building and claims that you didn’t provide enough lighting to navigate the stairs, your LRO policy would respond to the incident.
If you had a general liability insurance policy that includes premises liability, that coverage would apply to other third parties and not your tenants. If a delivery person falls in a similar manner as your tenant, the general liability is the policy that would respond.What this means to you is simple: carry both lessor’s risk only policies and general liability insurance on all properties that you lease for maximum protection from liability.

Protect your dream with SelectQuote

With so much at stake when it comes to liability coverage for your business, it’s important to understand all facets of your policy. SelectQuote partners with quality carriers and shops for lessor’s only policies by comparing rates, details and discounts from several insurance companies at once and then providing those quotes to you. Once you’ve decided on a policy, we walk you through your landlord’s insurance documents so you understand the details without wading through the fine print on your own.