There are risks associated with every business – even if you are just purchasing building space to lease it to other businesses and individuals. If a lessee or their customer sues you for injuries or property damages sustained while on your property, you will need insurance to avoid legal fees, medical bills, and other out-of-pocket loss. At Billy Brown Insurance, we offer lessor’s risk insurance for commercial property owners in the greater Delafield, Wisconsin area. Also known as Landlord Insurance, this coverage addresses your unique risk exposures as a commercial landlord.
Understanding Your Risks
Your liability risks can include losses sustained by your tenants, their employees, and their customers or clients. For example, your lessee could sue you for property damages resulting from a burst pipe you failed to insulate during the winter or a fire caused by a faulty electrical system. Likewise, a tenant’s customer or client could sue you for a fall-related injury caused by uneven steps or railing. Regardless of whether you are at-fault, you will need legal assistance to defend yourself against claims. If you are found responsible for losses, you may have to compensate the victim for damages. This can add up to tens or hundreds of thousands of dollars and it could even threaten the future of your business.
Lessor’s Risk Insurance for Commercial Landlords
Lessor’s risk insurance helps you address claims stemming for bodily injury and property damages occurring on your premises. If a lessee or their customer brings a suit against you, lessor’s risk insurance can help pay for your legal fees and court costs, as well as judgments and out-of-court settlements. However, coverage is usually limited to clams made by your lessees and their customers – not those of other third parties, such as contractors working onsite. For that, you would rely on your general liability insurance.
As a lessee, you may need to require your tenants to purchase their own general liability and property insurance policies to better protect your own business against litigation. If a customer slips and falls on a wet floor in one of your storefronts, the victim may sue the owner of the business for negligence – not you. If the tenant is uninsured, it may increase the risk of the victim pursuing the building owner for compensation of damages instead.
Lessor’s Risk Insurance in Wisconsin
You may need lessor’s risk insurance if you own and lease entire buildings or if you occupy partial building space and rent out the remainder to other businesses or commercial offices. This type of coverage can play an important role in managing your commercial risks and supporting the continuity of your business.
Note that each insurer has different requirements for lessor’s insurance, from the condition of your building, your maintenance schedule, and your occupancy ratios. We recommend talking with an independent agent here at Billy Brown Insurance to better understand the terms and conditions of your coverage, as well as your contractual obligations as a landlord and policy-holder.
Don’t put your business income and assets at risk. Let Billy Brown Insurance help you shop and compare your coverage options and find a policy that better protects you against major loss or bankruptcy. Contact us today for your free lessor’s risk insurance quote. We look forward to serving you soon.