Lessor’s Risk

Protect Your Commercial Property Investment

Comprehensive Coverage for Commercial Property Owners

If you own a commercial building that you lease to businesses, Lessor’s Risk Insurance (LRO) is essential. At Varde Insurance Group, we specialize in providing tailored Lessor’s Risk Insurance policies to protect your building, liability, and rental income from unforeseen risks.

What is Lessor’s Risk Insurance?

Lessor’s Risk Only (LRO) insurance is designed for property owners who lease commercial space to tenants, such as:
✔ Retail stores
✔ Office buildings
✔ Warehouses & industrial properties
✔ Strip malls & shopping centers
✔ Apartment buildings (when owned by an entity renting out space)

This policy protects you from property damage, tenant lawsuits, and loss of rental income in case of a covered event.

What Does Lessor’s Risk Insurance Cover?

1. Property Protection

  • Covers fire, theft, vandalism, and storm damage to the commercial building.

  • Includes protection for attached structures, signage, HVAC systems, and permanently installed fixtures.

2. General Liability Coverage

  • Protects against claims if a tenant, customer, or visitor is injured on the property.

  • Covers legal fees, settlements, and medical expenses due to slips, falls, or other incidents.

3. Loss of Rental Income

  • Reimburses lost rent if your building is temporarily uninhabitable due to a covered loss.

  • Ensures consistent cash flow even in unforeseen circumstances.

4. Additional Coverages (Optional)

✔ Equipment Breakdown Coverage – Protects HVAC, elevators, and essential building systems.
✔ Tenant Liability Protection – Covers damage caused by tenants’ negligence.
✔ Flood & Earthquake Insurance – Essential for properties in high-risk zones.
✔ Umbrella Liability Insurance – Provides extra protection beyond standard coverage limits.