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Lessor's Risk Insurance

An Introduction to Lessor's Risk Insurance

An Introduction to Lessor's Risk Insurance

A client who rents out office or living space opens themselves up to some unique risks. Imagine, for example, what might happen if their tenant is the victim of a robbery.

Perhaps the break-in is the tenant’s fault for not locking the doors, but your client could just as easily be held responsible if their security system isn’t up to par. They could be on the hook for replacing the stolen property. They might even have to pay for the lawsuit that determined their liability.

When accidents happen, even minor ones, lawyers usually cast a wide net in hopes of collecting compensation. Help your client protect their assets by recommending Lessor’s Risk Insurance.

What Is Lessor's Risk Insurance?

What Is Lessor's Risk Insurance?

The risk profile for a non-owner occupied building is significantly different than an owner-occupied one. Think about it this way: in general, an owner is more likely to take better care of their property than a renter.

Now consider that an on-site owner is also more likely to address issues and make prompt repairs than an off-site owner who has to be notified when there is a problem. That may mean an off-site owner is a riskier bet.

Lessor’s Risk Insurance, sometimes called Landlord Insurance, is the insurance industry’s response to the increased exposures non-owner occupied space often faces. This multi-line policy offers liability and property coverage to clients who rent out their building for:

  • Offices.
  • Warehouses.
  • Retail stores.

If your client rents their properties to other business owners, Lessor’s Risk may be a good investment for them.

What Does Lessor's Risk Insurance Cover?

What Does Lessor's Risk Insurance Cover?

In general, Lessor’s Risk covers your client’s liability for their tenant’s…

  • Property loss or bodily injury. If your client’s tenant is injured from falling down a staircase that has no handrails, Lessor’s Risk may help pay the medical bills.
  • Employees' property loss or bodily injury. Say your client’s tenant sends an employee on an errand, and the employee slips in the poorly lit back stairwell. Again, Lessor’s Risk may help address their doctor bills or your client’s legal fees.
  • Customers' property loss or bodily injury. Let’s say this time it’s the tenant’s customer who trips on the dimly lit stairs and smashes their expensive laptop in the fall. Lessor’s Risk may cover the cost of replacing the damaged property.

Lessor's Risk Insurance may also offer your clients…

  • Coverage for apartments with up to six units (50 percent of square feet).
  • Business Personal Property & Business Income coverage.
  • Commercial General Liability with $1 million / $2 million limits.
  • An Owner-Occupied Retail package.
  • A Coverage Enhancement endorsement.
  • Non-Owned Auto coverage.
  • Medical Payment coverage.

Lessor’s Risk covers properties rented for commercial use, but it may also cover building owners with office, retail, and habitation spaces for rent.

Buildings valued up to $2 million with a maximum square footage of 20,000 and the maximum gross receipts of $1.5 million are usually eligible for Lessor's Risk coverage.

Why You Should Quote Lessor's Risk Insurance

Why You Should Quote Lessor's Risk Insurance

Lessor’s Risk offers multiple coverage options to fit your client's needs. It gives your clients the protection, flexibility, and value they want. Moreover, many Lessor’s Risk policies bind immediately so your clients don’t have to wait when they need coverage fast.

And here's your slice of the pie: you can earn exceptional commissions selling Lessor’s Risk through Insurance Noodle. It's easy to write when you use our intuitive quoting platform, which means you can write a lot of it.

To learn more about Lessor’s Risk Insurance, give us a call at 888.466.8868.