Property & habitational

Commercial building owners (LRO)

Owners who lease commercial buildings to business tenants (lessor's risk only, minimal owner occupancy).

Why it needs cover

The exposure

LRO covers the owner's liability for tenant/visitor injury on leased premises plus building property loss; eligibility generally requires the owner to occupy less than about 25% of the space.

What we place

Coverages this class usually needs

Lessor's risk only (LRO) general liabilityOften (lender)

Tenant/visitor injury on leased premisesCore owner liability

Commercial property (building)Often (lender)

Fire, storm, vandalismBuilding value

Loss of rental incomeOptional

Lost rent after a covered lossRevenue continuity

Commercial umbrellaOften (lender)

Excess liabilityInjury severity

Equipment breakdownOptional

Building systemsSystem failures

What it costs

National benchmark premiums

Rated on: Building replacement cost, square footage, occupancy

Lessor's risk (LRO)

LRO averages about $1,972/yr (~$164/mo)

Total annual (typical)

LRO endorsement add-on $200-$400/yr; commercial property for rental buildings $1,000-$5,000/yr; a 50,000 sqft warehouse $1,500-$3,000/yr

Pricing figures are national typical or median ranges for small operators at commonly quoted limits, drawn from the published sources named on each page. They are budgeting benchmarks, not quotes. Your premium depends on state, payroll, revenue, limits, deductible, and loss history.

Sources: The Hartford (via LegalClarity); Insurance Navy; Insureon (LRO eligibility).

When it goes E&S

Where this risk gets hard to place

Vacant or partially vacant buildings, older construction, coastal/wildfire exposure, and high-hazard tenants (restaurants, industrial) can push LRO to E&S.

Contact

Talk to us about Commercial building owners (LRO).

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