What Is Lessors Risk Insurance and Who Needs It in North Carolina? 

If you own a building and lease it to a business, you may carry a type of liability risk that standard commercial property insurance may not fully address. Lessors risk insurance can be ideal for property owners in that position. Understanding what it covers and whether you need it can save you from a costly gap in coverage.

What Is Lessors Risk Insurance?

Lessors risk insurance, sometimes called lessors risk only (LRO) coverage, is a commercial liability insurance policy for building owners who lease their property to business tenants. It can cover the property owner, against tenant-filed liability and property damage claims arising from the building or the surrounding premises.

What Does Lessors Risk Insurance Cover?

A standard policy may offer coverage for:

• Damage to tenant-occupied buildings for which you’re liable
• Claims of tenant-filed bodily injuries that took place in the premises
• Loss of rental income if a covered risk forces the building to close temporarily
• Legal defense costs related to covered liability claims

Who Needs Lessors Risk Insurance in North Carolina?

Our agents may recommend lessors risk insurance to property owners who rent out spaces to commercial tenants, particularly owners of strip malls, office buildings, warehouses, restaurants and mixed-use properties.

Why Is Lessors Risk Insurance Important?

Without enough coverage, a liability claim can generate expenses that may be difficult to absorb. Lessors risk insurance can financially protect your property by sharing those risks with an insurer.

How Can Hampton Insurance Services Help Me?

Contact Hampton Insurance Services to review your property situation and find a policy that fits your needs. Our team works with multiple carriers to compare options for property owners across Clemmons, NC and beyond.

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.