Lessor’s Risk Insurance Coverage is designed to provide liability and property coverage for building owners who lease their buildings. This type of policy also provides liability and property coverage for building owners who occupy a specific percentage of their building and lease out the remainder of the building. Lessor’s risk insurance is often purchased by owners of apartments, condominiums, or malls. L.A. Bowen Insurance Agency can help you better understand your risk and provide the right combination of coverage and price.
Here are a few risks that would need lessor’s risk insurance coverage:
You own an apartment building or other commercial building and rent out office space.
You lease out retail or some other commercial space.
Property owners may be liable to the tenants and their guests for injuries if they fail to keep their premises safe. Injuries can be caused by defective conditions, poor lighting, deferred maintenance, and even criminal activity.
Claim example: A commercial building owner leased out five retail spaces in a strip mall. Under the lease agreement the owner was responsible for all building and parking maintenance. A customer of one of the retail businesses tripped and fell in the parking lot and it was determined that the injury was the result of poor lighting. The customer sued the retail business and the building owner. The building owner’s policy provided coverage for the injury and the claim was settled for $15,000 dollars.
Other Coverage that building owners should consider:
- Property coverage on the building
- Loss of rental income or business income
- General liability
- Workers compensation
- Employee dishonesty
- Umbrella or excess liability
- Cyber risk
- Employment liability (if you have employees)
Call L.A. Bowen Insurance Agency today for a complete review. We are locally owned and committed to servicing the needs of individuals and businesses.