If you have general liability insurance, you might think that protects you if one of your tenants gets hurt on a property that you lease. However, while general liability protects you from third party lawsuits, it typically does not include your tenants.
What is Lessor’s Risk Only (LRO) Insurance?
Lessor’s risk insurance covers tenants’ slip and fall accidents on your property. It can also pay for the following incidents if you are deemed liable for them:
- Personal injury
- Legal Costs
- Weather damage
- Water-related damage including sewer backups and burst pipes
- Auto accidents at the property
If a tenant takes you to court for a liability case and you lose, lessor’s risk insurance could save you thousands of dollars or more. At Hawsey Insurance
, we offer a variety of policies that can help you limit your liability. We are happy to explain how landlord insurance enhances your existing business insurance policy.
How is LRO Different from General Liability Insurance?
Lessor’s risk only is similar to general liability that provides protection against third party claims. However, LRO applies only to property damage or bodily injury suffered by tenants while using your property. If a tenant slips and falls on the staircase or there’s an accident in the parking lot, they might decide to sue you for damages. Lessor’s risk insurance can help pay for attorney fees and legal expenses up to your covered limit. General liability insurance covers third party lawsuits but excludes tenants. For example, if a delivery person fell on your damaged stairwell and decides to sue you, your general liability coverage can help towards handling the claim. Therefore, it’s important to have both general liability and LRO insurance to completely cover your property.
Is Lessor’s Risk Insurance Different from Commercial Property Insurance?
Lessor’s risk protects you against liability claims for tenants and supplement commercial property insurance, which handles property damage to the building itself. You can get a quote — often within a few minutes — for lessor’s risk insurance when you fill out our online form
Where Can I Get Lessor’s Risk Insurance?
If you want to protect your commercial building against claims made by tenants, contact one of our three offices to set up an appointment. We have offices in Madison
, and Southaven
. A licensed, experienced Hawsey Insurance representative can assist you with lessor’s risk insurance and all your business insurance needs. Call 601-856-7707 to find out more information on the best coverage for your commercial property.