Leased properties add many elements of risk to a business owner’s operations. When you consider the additional risks created by tenants and their guests or customers, it is easy to see the potential liabilities that can exist against the owner of the property. If you lease property to others, a Lessors Risk insurance policy can protect your assets.
What Is Covered?
As a property owner, you are burdened with a duty of care that requires you to keep the property safe so that people are not likely to be injured, and that property is not likely to be damaged. If either of these things occurs, and you are found legally responsible for the damage, a Lessor’s Risk coverage form will respond on your behalf. This means that the policy will provide liability protection to the property owner, and will defend that property owner in any lawsuits and then the policy will indemnify the property owner if any damages are owed due to legal liability.
How Much Coverage Do You Need?
When it comes to any liability insurance policy, it is best to obtain as much liability coverage as you can reasonably afford. The best approach is to speak with a qualified insurance agent about your needs who can provide you with the proper guidance regarding your coverage limits. When you are considering how much insurance to carry, your basic approach should be to evaluate the “worst-case” scenario. If you own a large building with several tenants and several customers in and out of the building on a daily basis, the potential for a single large claim could be great with such a high concentration of people in one location at any given time. Your hazards may be increased by the type of activities that occur on your leased property as well. Office buildings are typically lower risk operations than fitness facilities for example.
Protection of your financial assets is the primary goal of a Lessors Risk policy, as it will pay for attorney’s fees and claim costs associated with claims of negligence against you or your business. If you own a property that is leased to others, Lessors Risk coverage is necessary for your business.