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Home / Industries / Lessor's risk only (LRO)

Lessor's risk only (LRO) insurance

If you own a commercial building and lease it to others, your exposure is different from an owner-occupant's. Lessor's risk only insurance covers the liability you keep as the landlord, priced for the fact that tenants control daily operations.

Multi-tenant commercial retail property leased to tenants

Our approach

We place LRO insurance and commercial property coverage for owners of medical office buildings, retail centers, flex space and industrial buildings, and we check that tenant leases require tenants to carry their own insurance.

Exposures we plan around

  • Claims from tenants' customers and visitors
  • Wind, hail and fire damage to the building
  • Lost rent while the building is repaired
  • Vacancy restrictions when units sit empty
  • Code upgrade costs after a loss

Coverage in a typical program

LRO general liabilityLandlord liability for leased premises
Commercial propertyBuilding at replacement cost
Loss of rentsIncome while repairs are made
Ordinance or lawCode upgrades after a covered loss
Equipment breakdownHVAC, electrical and elevators
UmbrellaHigher limits for multi-tenant buildings

Frequently asked questions

What does lessor's risk only insurance cover?

LRO covers your liability as the owner of a building leased to tenants, such as a visitor injured in a common area you maintain. Tenants carry their own liability for their operations.

Who qualifies for LRO coverage?

Generally owners who lease most or all of a building to others and do not operate a business there. If you occupy part of the building, a different policy may fit better.

Should my tenants carry their own insurance?

Yes. Leases should require tenants to carry general liability naming you as additional insured, plus property coverage for their contents and improvements.

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