If you own property that is leased to others, whether one small office or an entire manufacturing complex, lessor’s risk insurance is a must-have if you wish to adequately protect your investment from litigation as the result of an accident. Read below to find out more about lessor’s risk insurance, how it can help protect your assets, and how you can obtain a policy.
What is lessor’s risk insurance? If you are the owner of a building that is leased to others for commercial purposes (e.g. retail or office space, warehouse, etc.), then you could be held liable if one of your tenants, their employees, or even a client of one of your tenants, is hurt or sustains property damage while on the premises. Lessor’s risk insurance (also known as landlord’s insurance) is intended to help cover you—the property owner—during these types of losses.
Why do I need lessor’s risk insurance? Lessor’s risk insurance covers liability and property damage losses that occur on a landlord’s property. Here are two examples:
- Liability – If an individual is injured at the premises location, which can include anything from a simple slip and fall accident, to major injuries such death and dismemberment, the liability portion of your lessor’s risk policy is intended to provide coverage, not only for the injured individual, but also to protect you from subsequent lawsuits.
- Property Damage – If a property loss occurs at the premises location, such as damage to an individual’s vehicle, the property damage portion of your lessor’s risk policy is intended to provide coverage.
Without a lessor’s risk policy, or without adequate coverage limits that meet your specific needs, you could be left owing large sums of money that could have otherwise been avoided.
What does lessor’s risk insurance NOT cover? Losses due to pollution or contamination are typically excluded under a lessor’s risk policy, though most companies have the ability to add this coverage at an additional charge. If you have a question about what is/is not covered under your existing lessor’s risk policy, contact us today for a thorough policy review.
What discounts are available on lessor’s risk insurance? Because lessor’s risk insurance is a form of commercial (versus personal) coverage, there may not be as many discounts available as there are with more common forms of insurance, such as home and auto. However, many carriers will provide policy discounts when insured properties are deemed “low risks,” such as maintaining a certain occupancy rate, or agreeing to oversee property maintenance.
Whatever your needs may be, discuss your lessor’s risk policy with us, and we’ll be happy to get you the best rate possible.
What should I avoid when purchasing lessor’s risk insurance? As with most forms of insurance, you’ll want to make sure you choose appropriate limits on your lessor’s risk policy, so that you’re adequately covered in the event of a loss. For example: If you lease a small, 10-unit office building, you can likely choose lower limits. However, if you lease several industrial properties where manufacturing occurs, this presents a much higher level of risk, which means you’ll need to choose the highest limits you can afford.
How can we help with lessor’s risk insurance? Most lessor’s risk insurance carriers do not provide quotes directly to customers, instead choosing professionals such as our agency to provide quotes for them. We’ve been providing a wide variety of commercial insurance policies to customers for years, and we’re sure to find you the highest level of lessor’s risk insurance coverage, at the lowest possible price. Give us a call today, and find out just how easy it can be to get you the coverage you need.