What is lessor’s risk?
Think of lessor’s risk insurance as a shield against unexpected mishaps at leased commercial spaces. It protects landlords from lawsuits if a tenant gets hurt or if their property is damaged while in the leased space.
Lessor’s risk vs. general liability insurance: What’s the difference?
While lessor’s risk insurance covers tenant-related incidents, general liability insurance offers broader protection, covering lawsuits from third parties unrelated to tenants.
For instance, say you lease your commercial space to a business. Say a tenant slips on a wet floor and blames your building’s lack of signage, lessor’s risk will have you covered. However, if a visiting vendor slips on that same spill, general liability insurance would come into play.
To note: NEXT currently does not offer lessor’s risk coverage, but we do provide customized general liability insurance and commercial property.
Which businesses require lessor’s risk insurance?
Any commercial property owner should consider lessor’s risk insurance. This is especially true for small business owners, as even one lawsuit could significantly impact your bottom line. Plus, lenders typically require this insurance coverage for any loans involving commercial real estate.
Properties that would benefit from lessor’s risk insurance include:
- Apartment buildings
- Shopping centers
- Office spaces
- Multifamily housing
- Warehouses
Key inclusions in a lessor’s risk insurance policy
Lessor’s risk insurance would help pay for medical expenses, renovations or legal fees related to tenant-occupied spaces if they sued you.
The following may also be covered:
- Weather damage
- Smoke damage
- Vandalism
- Theft
- Water damage (such as from burst pipes or sewer backups)
- Car accidents on the property
- Slips and falls
How does NEXT help business owners?
NEXT provides fast, affordable business insurance customized to your business’s specific needs. Simply apply online, answer a few questions, and get an instant quote. In less than 10 minutes, you get your proof of insurance, which you can access online 24/7.
Start a free instant quote with NEXT today.
Let’s find the coverage you need for your business
Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.
General Liability
Protect yourself from accidents that cause physical injury or damaged property.
Professional Liability/E&O
Shield yourself from lawsuits that claim your work errors caused financial losses.
Workers’ Compensation
Cover medical bills and lost wages if your employees have an accident at work.
Commercial Auto
Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.
Tools & Equipment
Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.
Commercial Property
Keep your building, inventory and equipment protected from fire or water damage.
Business Owner’s Policy
Combine general liability and commercial property into one policy to protect your business.
* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.