Lessor's Risk Coverage (LRO - Lessor's
Risk Only) policies are designed to provide liability
and property coverage for building owners who lease their building.
This policy also provides liability and property coverage for
building owners who occupy less than 75% of their building and lease
out the remainder of the building. This insurance is also referred
to as Landlord's Insurance.
If your California business owns a building and leases that building
or office space in that building, then your business needs Lessor's
Risk Coverage insurance. Lessor's Risk Coverage covers liability,
property damage and some policies may be expanded to cover bodily
injury and pollution legal liability. The general liability and
property damage aspects of these policies provide you with
additional liability and property damage coverage in the event that
an accident were to occur in the building while it is being leased
and occupied by a lessee.
Example of how Lessor’s Risk Coverage can protect your business.
1. Your California company owns an apartment building and also rents
out office space in that building. Should property damage occur to
the belongings of the occupants leasing your property, your Lessor's
Risk Coverage policy would provide them with coverage for repairs or
replacement of their property.
2. If your California company leases out retail space in a strip
mall. A Lessor's Risk Coverage policy will provide your tenants with
property damage and general liability coverage.
3. Your California business is located in a small portion of a large
office building and your company leases office space to other
California businesses. A Lessor's Risk Coverage Policy will provide
your tenants with property damage and liability coverage.
