Lessor’s risk insurance
Your building, leased. Your interest, protected.
Lessor’s risk only insurance, often called LRO, is for owners who lease their building to tenants. We help landlords in New York, New Jersey and Texas review the property and the leases, and understand their options.
What it typically covers
The building you own. The risks that stay with you.
When the whole property is leased out, the tenant runs the business inside and you keep the building. A lessor’s risk policy is commonly written around the owner’s side of that arrangement. Every policy has its own terms, limits and exclusions.
The building itself.
Property coverage for the structure you own, for covered causes of loss such as fire, wind or vandalism, as the policy defines them.
Your premises liability.
General liability for you as the owner, for claims tied to the property itself, such as an injury on a part of the premises you are responsible for.
Loss of rents, if added.
Coverage that can be added to help replace rental income lost while the building is repaired after a covered loss, subject to the policy’s limits.
Who it’s for
Landlords who lease the whole building.
Lessor’s risk is typically a fit when you own a commercial, retail or mixed-use building and lease it to one or more tenants who operate there, rather than occupying it yourself.
What it usually doesn’t cover
The tenant’s side stays with the tenant.
A lessor’s risk policy is about the owner’s interest. What happens inside the tenant’s business is typically insured by the tenant. Your leases often spell out who carries what.
Tenant contents.
A tenant’s inventory, furniture, equipment and other business property are generally insured under the tenant’s own policy.
Tenant operations.
Liability that comes from running the tenant’s business is typically the tenant’s to insure. Many leases require tenants to carry their own coverage.
Your own business.
If you operate in part of the building yourself, lessor’s risk may not be the right fit for that space. We’ll talk through how the property is used.
Why PB
Property is our focus. Landlords are our clients.
We work with the people who own and manage buildings, so the conversation starts with your property and your leases.
A property specialist.
Condominiums, co-ops, apartment buildings, multifamily and commercial properties are what we do every day.
Personal attention.
Led by Pinchas Bikel, with direct, personal attention on every property and a clear explanation of each option.
Where you own.
We serve property owners in New York, New Jersey and Texas.
How we work
Less on your shoulders. More clarity ahead.
A thoughtful process, from the first conversation to the next coverage decision.
A real conversation.
We begin with your building, your tenants, your leases and what you need covered.
A closer look.
We review your needs and explore market options, with coverage and pricing considered together.
A clear next step.
We explain the options and help you make an informed decision about your property.
A little more clarity
Lessor’s risk questions. Straight answers.
What is lessor’s risk only (LRO) insurance?
It is a commercial policy for building owners who lease their property to tenants. It typically combines coverage for the building with general liability for the owner’s interest, while each tenant insures its own contents and operations. The exact coverage depends on the policy.
Who usually needs it?
Owners of commercial, retail or mixed-use buildings that are leased to tenants rather than occupied or operated by the owner. A lender or a lease may also set specific insurance requirements, so it helps to have those on hand.
Does it cover my tenant’s property or business?
Generally, no. A tenant’s contents, inventory, equipment and the liability that comes from running its business are typically insured under the tenant’s own policy. Many leases require tenants to carry their own insurance.
Can loss of rents be included?
It can often be added. Loss of rents coverage is meant to replace rental income lost while the building is being repaired after a covered loss, subject to the policy’s terms and limits.
What if I use part of the building myself?
Lessor’s risk is generally written for buildings leased to others. If you occupy or operate in part of the property, a different type of policy may fit better. Tell us how the building is used and we’ll look at the options.
What should I have ready for a quote?
The property address, basic building details such as size, age and construction, who the tenants are and how they use the space, any insurance requirements in your leases, and your current policy and renewal date. You can attach your current policy to the quote form.
Where does PB write lessor’s risk?
We work with property owners in New York, New Jersey and Texas.
General information only, not a coverage commitment. Coverage depends on the policy’s terms, conditions and exclusions.
Let’s talk property
A better conversation about your leased building.
Tell us about the property and your tenants. We’ll help you look at your needs, understand your options, and take the next step with confidence.