Lessor's Risk Coverage

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. Lessor's Risk Coverage 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. Lessor's Risk Coverage 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.