What is Lessors Risk Only Insurance?
Commonly abbreviated as LRO insurance, Lessors Risk Only or Lessors Risk is insurance designed for the specialized needs of Landlords. This specialized insurance for Landlords helps protect owners of building space that lease that space to businesses and individuals. As you probably already know as a commercial landlord, there are many risks associated with renting commercial space to tenants.
To better understand LRO Insurance, it helps to first define the exact meaning of Lessors Risk Only.
The holder of an LRO Insurance policy is known as a ‘lessor’. Defined as a building owner that leases space in their building to a tenant or ‘lessee’, the word Lessor is referring to the holder of a lease. Considering that a large part of doing business as a commercial landlord involves keeping lessees happy, it’s important to do everything you can to protect both tenants and yourself.
LRO Insurance not only helps protect a commercial landlord against legal damages related to a bodily injury sustained on their property, but it can also protect against lawsuits related to property damage as well.
Should an incident occur on a covered commercial rental property, a good LRO insurance policy can help protect the lessor against legal judgments resulting from the most common causes of damage: bodily injury and property damage.
To help paint a better picture of how LRO insurance protects a lessor, suppose a lessee is renting the space for their store in your building. In the unfortunate case that a customer or lessor is injured in that store or on your property surrounding it, you could end up being held liable for any medical costs and damages sought in a related lawsuit.
Even if a contract with a lessee holds them liable for injuries sustained inside a rented retail space, the lessor could still be sued for an injury sustained in the surrounding areas on the property. Furthermore, a number of circumstances could lead to a lessor being held accountable for injuries inside the retail space, regardless of the verbiage of the contract with the lessee.
Beyond protecting a Lessor against injuries sustained on their property, LRO insurance can also help protect against damages sought by a lessee in the aftermath of vandalism or other property crime. Rather than run the risk of losing money because of a break-in or vandalism, it’s advisable for a lessor to carry a good LRO policy that will cover potential costs.
Lessors Risk Only insurance is a vital part of doing business as a commercial property landlord. At Tomins, our deep understanding of the distinct needs of a commercial landlord help us design the perfect LRO insurance policy for your commercial rental property.
As a Commercial Landlord, we know you work hard to make your business work. You deserve the peace of mind of knowing that you’re covered.
Get your free LRO Insurance Quote from Tomins today.
Get a Quote Now Talk With Us Today