SelectQuote finds the right landlord’s policy to insure your commercial property.
Lessor’s risk only insurance protects you from lawsuits filed by your commercial property tenants.
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:
- Retail complexes
- Apartment buildings
- 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 does landlord’s insurance cover?
Landlord’s insurance covers several different types of risk related to your commercial property that can result in property damage or bodily injuries. Common types of losses associated with these claims include, but aren’t limited to:
- Slip-and-fall injuries
- Weather damage
- Water damage (due to burst pipes)
- Auto accidents on the property
It’s important to note that LRO coverage doesn’t extend to your tenant’s customers or to your own property. It is exclusively used to pay for damages related to injuries sustained by your tenants. It does not cover damages to their property, however. They’ll need renter’s insurance for that
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.
We Compare Landlord’s Insurance Quotes from Multiple Carriers At Once
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.
Protect Your Dream with SelectQuote
Whether you own one commercial property or several, shopping for lessor’s risk only insurance is one detail you shouldn’t have to spend too much time on. SelectQuote can help you find the right level of coverage for your business’s needs and budget. Save time and money by letting us do the legwork so you can focus on what really matters: managing your commercial real estate assets.