LRO Insurance

Lessors risk only or LRO insurance is one of the most important coverages a commercial landlord can carry.

At Tomins, we help commercial landlords protect their operation from the many risks that threaten it on a daily basis. Our 24-hour online access portal is designed to insure you have the documents and information you need, as soon as you need them—enabling you to focus on what really matters — your commercial property rental business.

Unlike most other online commercial landlord insurance providers, Tomins is powered by Higginbotham and backed by a team of seasoned insurance experts.

Because you deserve an insurance partner that works as hard as you do.

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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.

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Which Coverages Do I Need?

Because a Lessor needs to protect their assets in addition to limiting their liability, it’s also wise to carry General Liability Insurance.

Regardless of the size, scope, and nature of their operation, every Lessor should carry a Commercial Package Policy. Also known as a CPP, these policies are designed to protect a business owner’s buildings, property, and other business assets against unforeseen loss.

A Lessor CPP Policy usually includes these three essential coverages:

    • General Liability Insurance: General Liability insurance is important for all small business owners, especially lessors of commercial space. Abbreviated as GL, this coverage can protect a Landlord or property management company from financial loss from lawsuits filed for injuries or property damage sustained as a result of your business operation. While your LRO insurance may help cover against damages related to lessee-occupied retail space, General Liability coverage helps protect you against injuries sustained in the unleased space and common areas that you are legally liable for.
    • Commercial Property Insurance: Commercial Property Insurance is pretty self-explanatory—it helps protect a commercial property owner’s physical property and assets. Commercial Property insurance can cover an owner against physical damage to their property, building, and physical assets.
    • Business Income Insurance: Business Income Insurance is another crucial coverage a Lessor should seriously consider carrying. In the unfortunate case of loss or damage to a Lessor’s commercial property, Business Income Insurance helps cover any income loss incurred during a rebuilding or recovery phase. Since lessees likely won’t be able to operate their businesses during a rebuild or repair, a Lesser may end up losing rental income as a result. Business Income Insurance can help a Lesser recoup this lost income until business operations are resumed.

Depending on the unique circumstances of your operation, you may want to think about carrying some additional LRO coverages. Some other important coverages for consideration include:

    • Employment Practices Liability (EPLI): If you hire employees to help manage your commercial property, you would be wise to consider EPLI coverage. Employment Practices Liability Insurance helps protect an owner against damages incidental to improper termination or hiring, sexual harassment, and workplace discrimination.
    • Workers’ Compensation Coverage: As the name implies, Workers Compensation Coverage helps protect a Lessor from damages related to workplace injuries, including wage replacement and medical bills. If you have employees working on-site at your commercial property, Workers Compensation is another coverage you should seriously consider as a Lessor.
    • Cyber Liability Coverage: Depending on the nature and complexity of your business, it may also be important to consider Cyber Liability Insurance. This coverage can help with costs related to data loss and subsequent restoration, legal settlements, and extortion from a cyber-attack.
    • Commercial Umbrella: Umbrella coverage is designed to protect a commercial property owner beyond the general aggregate limits of their standard insurance coverage.
    • Commercial Auto: If your business uses a company-owned truck, van, or another commercial vehicle, you should look into adding commercial auto coverage to your policy. This coverage can offer similar protections to your personal auto insurance to vehicles used for business purposes.

Why You Need a Tailored LRO Insurance Policy

In addition, Tomins LRO Insurance offers fully customizable coverage for any individual situation. Our specialized bakery insurance policies can also include:

    • Limited Care, Custody, or Control Property Coverage
    • Important Record and Document Coverage
    • Employee Benefits Liability Coverage
    • Professional Liability (E&O)

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Why LRO Insurance?

The high-risk nature of renting space to Lessees is reason enough to carry LRO insurance.  

As you know, the day-to-day life of a commercial Lessor is filled with unexpected twists, turns, and risks. The last thing you need is another thing keeping you up at night.

Lessors Risk Only coverage from Tomins is designed with Lessors in mind. We strive to offer the best of both worlds for Lessors: a modern online service portal with on-demand documents when you need them, backed by the expertise, local touch, and proven track record of Higginbotham.

From first-time commercial property lessors to large national organizations managing many commercial properties,  Tomins has you covered.

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How Much does LRO Insurance Cost?

LRO Insurance is a crucial part of doing business as a Lessor. No matter the size of your commercial property portfolio, Tomins has you covered.

Your operation is unique.

That’s why Tomins takes the time to understand your specific business to design a policy that’s perfect for your needs.

While it’s difficult to quote an exact price without understanding your business, we are firmly committed to offering you the best protection at the most competitive price possible.

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Applying for an LRO Insurance Quote

At Tomins, we work hard to be the best LRO insurance provider in the business.

 To help us provide the most competitive and accurate quote possible, we ask that you gather the following information available before applying for a quote:

  • Business address and tax ID 
  • Income for your most recently completed fiscal year 
  • Number of employees you currently employ
  • Information about other insurance you currently hold
  • Volume, nature, and storage method tenant or client data  
  • Proof of professional licensing and other relevant certifications or permits  
  • History of past claims (at least three years) 

Take the time to make sure all of this information is up to date and accurate. It’s the best way to ensure that we can provide you with the best quote possible.

Tomins — Mindful insurance today, successful business tomorrow.

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