All About Lessor’s Risk Only Insurance

Lessor’s risk only insurance is a tailored policy aimed at financially safeguarding property owners who rent out their buildings to tenants. This type of insurance can be crucial for landlords who rent out commercial properties such as office buildings, retail spaces or industrial properties.

Lessor’s Risk Only Insurance Coverage and Benefits

Lessor’s risk only insurance primarily covers liability issues concerning the tenant. This aspect can help cover legal and medical expenses if the tenant is injured due to covered events on the property. For instance, if someone renting the building slips and falls, the lessor’s risk only policy may cover the resulting legal fees and medical costs.

Why Lessor’s Risk Only Insurance is Important

For landlords, having a lessor’s risk only insurance can be essential because it can mitigate financial risks associated with property ownership. Without this coverage, landlords may be responsible for all tenant medical costs and potential legal fees for which they’re liable, which could be financially devastating.

Key Considerations

When selecting a lessor’s risk only policy, landlords should consider the following: 

• Coverage limits—Ensure the policy limits are sufficient to cover the property’s value and potential liability claims.

• Deductibles—Higher deductibles can lower premium costs but require more out-of-pocket expenses in the event of a claim.

• Additional coverage—Landlords might need additional coverage for specific risks, such as property insurance and flood insurance if the property is in a flood-prone area.

Learn More

By understanding the coverage and selecting the right policy, landlords can help ensure their investment is financially protected against unforeseen events. Contact Hampton Insurance Services to discuss your insurance portfolio.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.