Lessor’s Risk Only

-
Lessor’s Risk Only Lessor’s risk only (LRO) is a type of small business insurance for commercial landlords. It protects you in case one of your tenants sues you for property damage or injuries sustained in your building. The coverage, also known as landlord insurance, is designed for owners of commercial property, such as apartment buildings, retail complexes, office space, warehouses, and other building types. The landlord generally must not occupy more than 25 percent of the building leased to tenants. LRO vs General Liability Insurance The main difference is that landlord insurance applies exclusively to losses resulting from your tenant’s use of your property. For example, if one of your tenants slipped and fell on a stairway in your leased building and blames your failure to provide adequate lighting, then your lessor’s risk only policy would respond to the incident. It would provide you with an attorney and pay for your legal expenses, up to the policy limits you purchased. Your general liability coverage applies to lawsuits that other third parties (not your tenant) bring against you for property damage or injuries suffered on your property. If a delivery person fell on the same stairs as the tenant, your general liability policy would respond. LRO vs Commercial Property Insurance? Lessor’s risk only shields you against tenant claims of property damage or bodily injury due to your wrongful act. It has nothing to do with protecting your own commercial property against various types of damage. For that, you need commercial property insurance. What Does Lessor’s Risk Only Insurance Cover? Lessor’s risk only insurance covers a wide range of risks: -Slip-and-fall injuries -Weather damage -Vandalism -Fire -Water-related damage (burst pipes / backups) -Auto accidents at the property -Theft -Pollution damage, through an endorsement to the base policy. This underscores the importance of maintaining both lessor’s risk only and general liability insurance on all properties you lease. #BeNewinsurance #InsurTech #inclusiveinsurance #insurance #reinsurance #takaful #climatechange

Comments

Post a Comment

Thank you for making this valuable comment.

Popular posts from this blog

Host Liquor Liability vs. Liquor Liability

-
Image
Host Liquor Liability vs. Liquor Liability Host liquor liability insurance does not cover companies that manufacture, sell, or serve alcohol as part of their business operations, such as bars, breweries, and restaurants. Instead, businesses that sell or serve alcohol for profit would need to purchase liquor liability insurance to gain protection from lawsuits related to inebriated patrons who cause bodily harm or damage to others. What is social host liquor liability? Social host liquor liability refers to the liability individuals assume as a host if they hold a social gathering where alcohol is provided, but guests aren't paying for it. It covers individuals, not businesses, and is typically included in homeowner's and renter's insurance policies. If someone throws a party and a guest causes property damage or injuries to a third party after becoming intoxicated, social host liquor liability can pay for the host's legal expenses if a lawsuit is filed. Hosts can b...
Read more

Business Owner’s Policy

-
Image
Business Owner’s Policy A business owner’s policy (BOP) is defined as the combination of two important forms of insurance commercial property and general liability into one convenient package. Business owner’s policies usually cost less than buying the two coverages separately. A business owner’s policy combines general liability and commercial property insurance coverage to protect you against lawsuits and damages. In one convenient package, it covers several major lawsuit risks your small business could face, including those resulting from: -Third-party bodily injuries -Third-party property damage -Product liability incidents -Advertising injuries Business owner’s policies also provide financial support when your building or commercial property (also called business personal property) is damaged by an incident the policy covers, typically: -Fire -Theft -Vandalism -Some weather-related events In addition to providing a financial backstop for your small business, a BOP also gives ...
Read more

Third-Party Cyber Liability Insurance

-
Image
Third-Party Cyber Liability Insurance Ransomware, phishing attacks, and data breaches are continuing to rise impacting more businesses each year. If one of your clients is hacked and sues your business, the resulting legal bills could be devastating. Third-party cyber liability insurance helps ensure that your IT business can survive the financial aftereffects of cybercrime. Scenario 1; Let's say you're an IT consultant hired to help your client step up a security protocol. You recommend antivirus software that has a few recent well-documented weaknesses. When your client's network is compromised and customers' sensitive financial information is stolen, the client blames you and files a lawsuit. Scenario 2; Where Company A, a clothing retailer, stores customer data like names, addresses, and credit card information on their servers. Unfortunately, due to a security flaw in their system, hackers gain unauthorized access and steal this sensitive customer data. At ...
Read more