No matter who the client is, a successful agent endeavors to provide the best options available to suit their needs. For commercial property owners who lease their entire building or individual spaces, Lessor’s Risk Only or LRO insurance is one product you will want on the table.
Educating the Client
Even the savviest owner can be unaware of what policies they have in place and what these plans cover. It is not uncommon for individuals to assume their basic insurance policy will shield them from all types of liability. Therefore, educating clients on what is and is not covered is tantamount. To do this, there are some simple examples that clearly illustrate the importance of additional policies.
1. The lessee operates a retail business out of your building.
Upon exiting, a customer trips over an uneven surface on your property and injures themselves. If the individual incurs medical expenses and any other losses, they can hold the building owner directly liable.
2. A space in your building is leased out as a gym.
One of the members has goods stolen from their locker and blames the owner of the gym for weak security, who in turn blames the property owner.
Regardless of actual fault and legitimacy of claims, if the proper policies are not in place, property owners may be at considerable financial risk. Designed to protect owners from situations that arise from the lessee or their customers, LRO insurance is essential for the full protection of assets and ownership.