Lessor's Risk Only (LRO) Insurance for Commercial Landlords
Your Guide from Johal Insurance Brokers
As a commercial landlord, your tenants are your business—but they are also your single biggest liability. Whether you own a small neighborhood strip center or a large anchored mall, you need a policy that clearly separates your personal risks from your tenants' business operations. This specialized protection is known as Lessor's Risk Only (LRO).
The "Triple Net" (NNN) Trap
Many landlords believe that because their tenants are on Triple Net (NNN) leases and carry their own insurance, the building owner is fully protected. This is a dangerous myth.
If a customer slips on an icy sidewalk, trips in a poorly lit parking lot, or is injured in a common area, they will almost always sue the building owner first. Without a dedicated LRO policy, you are left to defend your equity and personal assets against expensive litigation.
Critical Coverages for Retail Owners
We structure LRO packages that address the unique financial exposures of retail real estate:
Comprehensive General Liability: Protects you from third-party claims occurring in common areas like sidewalks, lobbies, and parking structures.
Loss of Rental Income: If a fire or disaster forces your tenants out, this replaces your lost rental income while the property is being rebuilt—protecting your Net Operating Income (NOI).
Glass & Storefront Coverage: Retail storefronts are highly vulnerable to break-ins, vandalism, and storms. We ensure your plate glass is specifically covered to avoid out-of-pocket repair costs.
Tenant Move-Back Coverage: This helps cover the extra expenses of getting your tenants back into their spaces once repairs are complete, ensuring your occupancy rates recover quickly.
Secure Your Real Estate Portfolio
Don't rely on your tenants' insurance to protect your investment. We leverage access to 20+ top-rated carriers to find the most competitive LRO rates for your specific building class, ensuring you meet all lender requirements without overpaying.
Stop overpaying for your building’s insurance.