Lessor's Risk Insurance Definition

Save

Property insurance policies, both personal or commercial, come in many types depending on the type and property and the type of policy that is needed. One type of commercial property insurance policy is known as lessor's risk. This type of policy has been developed for building owners who are leasing their buildings to others. A policy provides coverage for liability as well as property and is also known as landlord's insurance in some places.

Policy Needs

  • A lessor's risk policy may be needed by various types of people and business depending on what the needs are for the policy. Many people or businesses that lease buildings to others have a responsibility to the building as does the lessee. Property owners that provide leases for office buildings or have various apartment units or complexes will have a need for a lessor's risk insurance policy.

Coverage

  • There are many coverages that are provided with a lessor's risk insurance policy which includes liability and property damage. An endorsement can even be added to some types of policies to add coverage for bodily injury and legal liability for any pollution that may occur. The general liability section of a lessor risk policy provides additional liability when an accident or injury occurs when a leased building is being occupied by a lessee.

Policy Risks

  • A lessor's risk insurance policy is issued based on risks that are eligible for coverage and ineligible for coverage. Eligible risks can include having no firearms on the premises and having no more than two claims in the past three years. Ineligible risks can include buildings that are greater than 100,000 square feet in area and specific business activities such as running a nursing home or an assisted living facility. A lessor's risk policy is typically not provided for ineligible risks.

Credits

  • Many insurers that provide a lessor's risk policy provide credits or discounts when certain conditions have been met. This can include adding a commercial tenant of a leased building as an additional insured on a policy. Another credit that can be applied to a policy is requiring a tenant to be responsible for certain aspects of the building or property. This can include snow removal from sidewalks during the winter and the condition of pavement and curbs.

Limits

  • A lessor's risk insurance policy can be purchased with limit amounts that are required or specifically needed by an insured. Most policies provide limits of $1 million to $3 million per occurrence of liability coverage for each location listed on the policy. If pollution coverage is included on a policy coverage can range from $250,000 to $300,000 per occurrence. Limits can usually be increased to whatever is needed by a property owner.

References

  • Photo Credit James Woodson/Digital Vision/Getty Images
Promoted By Zergnet

Comments

Resources

You May Also Like

  • Lessors Risk Insurance Definition

    "Lessors risk insurance" is purchased by a building own to revive for their liability. Get a lessors risk insurance definition with help...

  • What Is Contingent Auto Liability Insurance?

    Lessors Risk Insurance Definition. Property insurance policies, both personal or commercial, come in many types depending on the type and property and...

  • Building Insurance Definition

    Lessors Risk Insurance Definition; Definition of Blanket Insurance; Construction Insurance Definition; Comments You May Also Like. Lessors Risk Insurance Definition.

  • Definitions of Lessee & Lessor

    To buy equipment that you only need for a short amount of time might be cost prohibitive. ... Lessors Risk Insurance Definition....

  • Definition of Builders Risk Insurance

    This insurance is strictly in force during the construction only and the protection ceases once the job is finished. ... Lessors Risk...

  • What is the Meaning of Lessor & Lessee?

    Definitions of Lessee & Lessor; Who Is the Lessee & Who Is the Lessor in a Contract? Comments You May Also Like....

  • What Is Primary & Non-Contributory Insurance?

    When more than one liability insurance policy may respond to a claim on behalf of the insured, ... there are numerous endorsements...

  • What Is E&O Insurance?

    Lessors Risk Insurance Definition. Liability Insurance Information. Malpractice Insurance Information. Certificate of Insurance Procedures. General Liability Insurance ...

  • Definition of D&O Insurance

    Lessors Risk Insurance Definition. ... Okay. So, directors and officers liability coverage steps in and says, "Okay, if that situation comes about,...

  • Definition of Certificate of Insurance

    Lessors Risk Insurance Definition. Liability Insurance Information. Malpractice Insurance Information. Certificate of Insurance Procedures. General Liability Insurance ...

  • General Liability Insurance Definitions

    General Liability Insurance Definitions. Part of the series: Insurance Information. ... Lessors Risk Insurance Definition. Liability Insurance Information.

Related Searches

Read Article

23 Deliciously Easy Lunches to Bring to Work

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!