Lessor Risk

Lessor Risk Information

 

What is lessor risk insurance?

Lessor risk insurance is a business owners package specifically designed for the needs of a building owner leasing out their building to another tenant. This package covers the "big three": building property, general liability, and business income.

Like most types of business insurance, lessor risk insurance protects you against liability. A lessor risk policy is a must if you own property in Mammoth Lakes, Bishop, Lone Pine, Bridgeport or anywhere in between.

 

Does my tenant need insurance?

Yes, your tenants need insurance. It should be a requirement in the lease contract that they carry a general liability limit at a minimum amount of $1,000,000 per occurrence and $2,000,000 general aggregate limit. It should be a requirement in the least sonctract that the policy name you as additional insured, blanket waiver of subrogation, and primary non-contributor endorsements. We're always looking out for you and can help in evaluating your tenants' insurance for adequacy.

 

What are the benefits of your tenant having their own insurance?

First, it makes their insurance primary. An ordinary slip and fall injury might occur in your tenant's restaurant, and their policy defends you (the lessor) and you might not even need to file a claim on your policy.

Second, by being named, you should automatically get a renewal notice of your tenant's policy. If they get cancelled, you'll be notified of the cancellation. Additionally your lessor risk policy might give you credits if you're named as additional insured on your tenant's policy.

The tenant also needs to cover their business personal property, business income, tenant improvements, and other interests.

 

Why choose Insurance Scouts?

We take our time getting to know your property and insurance needs to get you the best lessor risk policy and other commercial policies for your company. Because this is property insurance and many carriers consider Mammoth Lakes and Mono County a high fuel, forest fire and brush fire hazard area, we have carriers that work well in this area.

We work hard to save you time and get you placed properly. We want to see your business thrive and we can help you with all of your business insurance needs. We love being your business's biggest advocate so you can focus on operating your business.

 

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