(Commercial Building Owners)
What Does Lessor's Risk Cover?
Lessor’s Risk is an insurance policy for commercial building owners who rent or lease out space. It can be leased or rented to businesses or mixed use (business & residential) combined. This is written as a commercial policy that provides liability and property coverage on the structure. Premiums are based on several factors such as size, year built, construction class and the business type of the tenant.
Since these businesses are operating on your property, you could be held liable for injuries or property damage that occur on premise. As the building owner, you should require every tenant to carry their own property and liability insurance. Tenant liability limits should be equal to or greater than yours. We also recommended that the tenant list you as an additional insured and provide you with a certificate of insurance.
Depending on your needs and the tenant exposures, you may obtain additional liability limits through an umbrella policy.