Abram Interstate Insurance Services, Inc., CMGA

Helping Independent Insurance Agents Since 1996

Who Needs Lessor’s Risk Insurance and why? | LRO Insurance Product Highlight

Published on November 6, 2017

Being a property owner can be a lucrative investment — especially in California. With population increase on the rise in our beautiful state, real estate is becoming a better and better bet (with caution and wisdom of course). However, when you get into real estate investment property, you open yourself up to a load of liability, especially in the commercial sector.

With renting out commercial real estate, your customers have more to gain, but also more ways they could lose. This is why your clients need Lessor’s Risk Insurance (LRO Insurance).

What is Lessor’s Risk insurance and why is it important?

The Pekin Insurance Blog puts it this way:

 In simple terms, taking out a Lessor’s Risk insurance policy is protecting you and your investment from people who sustain injuries or damages by use of or interaction with your property. However, depending on the limits of your coverage, this policy can also cover special situations that arise, such as:

  • Litigation expenses from lawsuits and processes
  • Repair or replacement of building owner’s belongings such as hallway furnishings
  • Business Income and extra expense coverage

It’s clear that the expenses could add up quickly, even after just one incident.

Make sure your customers are insured for such occasions with our wholesale Lessor’s Risk Insurance offerings.

 Lessor’s Risk Insurance Product Highlights:

  • Owners of commercial buildings with tenants.
Property, General Liability, Earthquake, Inland Marine



Higher Deductibles Available
Optional Coverages
  • Business income/Loss of rents and extra expense
  • Building owners endorsement
  • Lobby and hallway furnishings owned by the insured are included in building coverage
  • Building ordinance and law
  • Equipment used to maintain the property
Underwriting Summary
  • All tenants should carry their own General Liability Insurance naming the applicant as additional insured with equal or greater limits.
  • Buildings with no updates are acceptable (coverage may be reduced) No knob and tube wiring
  • Habitational and apartments are acceptable
  • Most tenant occupancies are eligible
  • Buildings must be leased to others, with less than 10% occupancy by owner 
  • All buildings must sustain a minimum occupancy rate of 80%. (we offer a vacant building product for buildings will less occupancy)
  • Chat with us online now for a quick question!


Click here to submit a one-page quick-quote application

Abram Interstate Insurance Services, Inc. is a California wholesale insurance broker (CMGA) that has licensing and expertise to place business in both admitted and non-admitted markets for Personal Lines Insurance, Commercial Lines Insurance, and Agribusiness Insurance in California and surrounding areas.

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