If you own a commercial building and lease space to tenants, protecting your investment is essential. A Lessor’s Risk policy, also known as Commercial Building Owners Insurance, provides both property and liability coverage for landlords who rent to businesses or mixed-use tenants.
At Mountain Lakes Insurance, we help property owners in Woodstock and throughout Georgia secure the right coverage to protect their buildings, manage tenant risk, and meet insurance requirements with confidence.
What Is a Lessor’s Risk Policy?
A Lessor’s Risk policy is a commercial insurance policy designed for property owners who lease space to others. It provides two primary types of coverage:
Property Coverage
Protects the physical structure of the building from covered losses such as fire, storm damage, or vandalism.
Liability Coverage
Covers legal and medical expenses if someone is injured on the premises or if property damage occurs due to your ownership responsibilities.
This policy is ideal for landlords who lease space to retail shops, offices, restaurants, or a combination of residential and commercial tenants.
What Factors Affect the Premium?
Several factors influence the cost of a Lessor’s Risk policy, including:
- Size and square footage of the building
- Year the building was constructed
- Construction type and materials
- Occupancy type and tenant business operations
- Safety features and maintenance history
Our team will help you evaluate these factors and compare quotes from multiple carriers to find the best fit for your property.
Managing Tenant Risk and Liability
As the building owner, you may be held liable for injuries or property damage that occur on your premises. To reduce your exposure, we recommend the following:
- Require each tenant to carry their own general liability and property insurance
- Ensure tenant liability limits are equal to or greater than your own
- Request to be listed as an additional insured on each tenant’s policy
- Collect and review certificates of insurance regularly
These steps help protect your investment and ensure that your tenants are also contributing to risk management.
Add Extra Protection with Umbrella Coverage
Depending on your tenant mix and property use, you may benefit from additional liability protection. A commercial umbrella policy can extend your liability limits and provide peace of mind in the event of a large claim or lawsuit.
Frequently Asked Questions
Yes. Whether you lease to a boutique, restaurant, or office, this policy helps protect your building and shields you from liability if someone is injured on the property.
See what independent coverage can do for you
Whether you're comparing quotes or have questions about your current policy, we're here to help. Use the online tool below to explore your auto insurance options at your convenience, or give our Woodstock office a call to speak directly with a local agent who understands your needs. At Mountain Lakes Insurance, we make it easy to find the right coverage with the personal touch you deserve.
