Lessor's Risk Insurance in Pennsylvania

Protecting Commercial Property Owners in Lancaster, Reading, Harrisburg & Surrounding Areas

If you own a commercial building and lease it to tenants, you have unique risks that a standard property insurance policy may not fully address. At Blue Marsh Insurance, we help commercial property owners across Pennsylvania protect their investment with customized Lessor's Risk Insurance.

Whether you own an office building, retail center, warehouse, medical office, or mixed-use property, we'll help you find coverage that fits your building, your tenants, and your budget.

What is Lessor's Risk Insurance?

Lessor's Risk Insurance—also known as Lessor's Risk Only (LRO) Insurance—is designed specifically for owners of commercial buildings who lease space to tenants.

While your tenants are responsible for insuring their own businesses and contents, you are responsible for protecting the building itself and your liability as the property owner.

A Lessor's Risk policy helps protect you from financial losses resulting from covered property damage and liability claims.

Who Needs Lessor's Risk Insurance?

If you own commercial property and lease it to others, Lessor's Risk Insurance may be the right solution.

This coverage is commonly purchased by owners of:

• Office buildings
• Retail shopping centers
• Strip malls
• Medical office buildings
• Professional office suites
• Warehouses
• Industrial buildings
• Mixed-use commercial properties

Whether you own one building or an entire portfolio of commercial properties, protecting your investment should be a top priority.

What Does Lessor's Risk Insurance Cover?

Every property is different, but a typical Lessor's Risk policy may include:

Commercial Property Insurance
Helps cover damage to your building from covered causes of loss such as fire, wind, hail, vandalism, and certain other perils.

General Liability Insurance
Provides protection if someone is injured on your property or if you're found legally responsible for damage to someone else's property.

Loss of Rental Income
If a covered loss makes your building temporarily untenantable, this coverage can help replace lost rental income while repairs are being completed.

Building Systems & Equipment
Can help protect permanently installed systems such as HVAC equipment, plumbing, electrical systems, elevators, and other building infrastructure.

Ordinance or Law Coverage
Helps pay for additional costs if local building codes require upgrades or changes during repairs after a covered loss.

Do I Need Lessor's Risk Insurance?

If you lease commercial space to tenants, the answer is almost always yes.

Many property owners mistakenly assume their tenants' insurance protects the entire property. In reality, your tenants' policies generally protect their business operations, equipment, inventory, and liability—not the building you own.

Without the proper insurance, you could be responsible for significant repair costs or liability claims following a fire, storm, or other covered loss.

Lessor's Risk Insurance FAQ

What is the difference between Lessor's Risk Insurance and Commercial Property Insurance?

Lessor's Risk Insurance is a type of commercial property insurance specifically designed for building owners who lease space to tenants. It combines property and liability coverage tailored to landlords' unique exposures.

Does my tenant's insurance protect my building?

No. Your tenant's policy generally protects their business property and liability—not the building itself. The building owner should carry Lessor's Risk Insurance.

How much does Lessor's Risk Insurance cost?

Premiums depend on several factors, including the building's age, size, location, construction type, occupancy, claims history, and the types of tenants occupying the property.

Is loss of rental income included?

Many Lessor's Risk policies include Business Income or Loss of Rental Income coverage, which helps replace rental income after a covered loss while repairs are being made.

Do I need insurance if my lease requires tenants to carry insurance?

Yes. Requiring tenants to carry insurance is an important risk management tool, but it does not replace the need for insurance protecting your building and your liability as the property owner.

Lessor's Risk Insurance Doesn't Have to Be Complicated

Commercial property insurance isn't one-size-fits-all.

The type of tenants you have, the age of your building, construction type, occupancy, location, and replacement cost all play a role in determining the right coverage.

At Blue Marsh Insurance, we'll take the time to understand your property and recommend coverage that protects your investment without paying for protection you don't need.