Buildings you lease to businesses
Commercial landlord and lessor’s risk insurance
If you own a building and lease it to businesses, you need coverage built for a landlord, not an occupant. Kaufman Insurance Group compares lessor’s risk insurance for storefronts, offices, warehouses, and small strip centers leased to tenants.
- Coverage for the building and your liability as the owner
- Options for rent you lose after a covered loss
- Help reviewing what your tenants should carry
Personal & Commercial · Quick Quotes – Good Rates · Great Companies
As an independent agency, we compare lessor’s risk insurance from the companies we work with, and we can also shop many other commercial insurance companies through wholesale partners. The companies that can quote you depend on the building, its tenants, where it is, and each company’s own rules.
These logos show some of the insurance companies Kaufman Insurance Group may be able to quote as an independent agency. Showing a logo does not mean the company endorses us. Which companies can offer you coverage depends on the type of insurance, where you live, and each company’s own rules.
The basics
What lessor’s risk insurance is
Lessor’s risk insurance is coverage for an owner who leases a building to businesses. The tenants run their businesses inside, and you own the building. Your policy protects the structure and your liability as the owner.
Your tenants’ businesses, their equipment, and their own liability are theirs to insure. That is why leases often spell out what each tenant must carry, and why the owner and tenants should both have the right coverage in place.
If you rent homes to people rather than space to businesses, our landlord insurance page is the better fit.
Commercial buildings
Storefronts, offices, warehouses, and small strip centers leased to one or more businesses.
Mixed-use buildings
Buildings with both commercial tenants and apartments, insured with both uses in mind.
Know what you are choosing
What lessor’s risk insurance can include
These are the main coverages to compare for a leased commercial building.
Building coverage
Helps repair or rebuild the building after covered causes of loss.
Owner’s liability
Helps pay if someone is hurt in areas you control, such as parking lots, sidewalks, and shared hallways, and you are found responsible.
Rental income
Helps replace rent you lose while the building is repaired after a covered loss.
Equipment breakdown
Options for building systems such as heating, cooling, and electrical equipment, depending on the company.
Ordinance or law
Options for added costs to meet current building codes after a covered loss.
Umbrella options
Extra liability limits through a commercial umbrella policy.
Is it right for you
Owners we can help
If you own a building and lease the space to businesses, a lessor’s risk policy is worth a look.
Single-tenant owners
You lease a whole building to one business.
Small strip center owners
You lease units to multiple businesses in one building.
Mixed-use owners
You have a storefront or office on the ground floor and apartments above.
New commercial investors
You just bought a building with tenants already in place.
Just bought a building with tenants? An agent can help you line up coverage before closing.
How Kaufman helps
How we help you insure a leased building
We look at the building and its tenants, then match it with the right policy.
Tell us about the building
Share the address, age, construction, updates, tenant types, and square footage.
We compare companies
An agent reviews lessor’s risk options and explains how each policy handles the building, liability, and rent.
Review tenant requirements
We can help you think through what your leases ask tenants to carry, and your attorney can finalize the wording.
We focus on Ohio and North Carolina, and we can also help businesses in most other states. Beyond the companies we work with directly, we can also shop many other commercial insurance companies through wholesale partners.
Common questions
Lessor’s risk insurance questions
What does lessor’s risk only mean?
Lessor’s risk only, often shortened to LRO, is a policy for building owners who lease the space to others and do not run a business there themselves. It focuses on the building and the owner’s liability.
What if I use part of the building for my own business?
Then a standard lessor’s risk policy may not fit. A business owners policy or a commercial property and liability policy may be a better match. Tell us how the building is used so we can look at the right options.
Should my tenants carry their own insurance?
Usually, yes. Many leases require tenants to carry liability insurance and coverage for their own property and improvements, and to name the landlord as an additional insured where the company allows it. Your attorney should review lease language.
Does lessor’s risk insurance cover lost rent?
Many policies offer rental income coverage, which can help replace rent you lose while the building is repaired after a covered loss.
What about a building with apartments above a storefront?
Mixed-use buildings have both commercial and residential tenants. They can often be insured on a commercial policy that accounts for both. Tell us how many units of each type there are.
Do you insure residential rentals too?
Yes. For single-family homes, duplexes, and small multi-family rentals, see our landlord insurance page.
Related coverage
Coverage that works with lessor’s risk insurance
Landlord insurance
Coverage for single-family homes, duplexes, and small multi-family rentals.
Explore landlord insuranceVacant property insurance
Coverage while a building sits empty between tenants or during renovation.
Explore vacant property insuranceCommercial umbrella insurance
Extra liability limits above your commercial policies.
Explore commercial umbrellaCommercial property insurance
Coverage for buildings your own business occupies.
Explore commercial propertyBusiness owners policy
A package of property and liability coverage for many small businesses.
Explore business owners policiesCommercial insurance hub
See all the business insurance we can help with, from liability and property to vehicles and contractors.
Explore commercial insuranceReady to protect your commercial building?
Start a lessor’s risk quote online, or contact us with questions. An agent will help you compare your options.
Prefer to talk? Call (330) 486-8404.