Protect Your Rental Properties from the Risks Tenants Create
Lessor's risk coverage for commercial landlords — liability, property damage, loss of rents, and vacancy gaps covered.
Takes ~2 minutes · We verify requirements · Send options same-day
“I run a snow plow removal business and my old insurance provider dropped my coverage!! They got everything sorted out and I was insured the same day. These guys know how to help, use them!!”
— Jessica K., Google Review
“Helped me get the right coverage for my business and made everything super easy to understand. Bobby was especially great — very friendly, responsive, and genuinely cared about making sure I was taken care of.”
— Michael O., Google Review
“He takes the time to understand your business needs before recommending coverage. You can tell he genuinely cares about his clients and goes the extra mile to make sure everything is handled properly.”
— Jen K., Google Review
“I run a snow plow removal business and my old insurance provider dropped my coverage!! They got everything sorted out and I was insured the same day. These guys know how to help, use them!!”
— Jessica K., Google Review
A single uninsured tenant incident can cost a landlord hundreds of thousands in legal fees and damages. Your tenant's policy does NOT protect you.
We Review Your Leases & Coverage Gaps Before You Bind
Your tenant's insurance does NOT protect your building. As the property owner, you need dedicated coverage for the structure, your liability, and your rental income. We review your leases and identify gaps in your current coverage before we quote — so you're protected as the building owner.
- ✓Tenant insurance requirements in your lease verified and enforced
- ✓Vacancy provisions reviewed — know exactly when coverage reduces or excludes
- ✓Replacement cost valuation current (not purchase price — rebuild cost)
- ✓Loss of rents coverage adequate for actual rental income across all units
- ✓Umbrella limits appropriate for tenant risk profile (restaurants, gyms, daycares)
- ✓Water/sewer backup coverage confirmed — the #1 excluded commercial property claim
Coverage Gaps We Find in Every Landlord Policy Review
These are the gaps that cost commercial building owners thousands — discovered after a loss when it's too late. We find and close all of them before you bind.
- ✕Tenant’s insurance lapsed — tenant causes damage, building owner’s property unprotected
- ✕Vacancy exclusion kicks in at 60 days — claim denied on unit vacant 90 days
- ✕Loss of rents missing — 4 months lost income ($32,000+) comes out of owner’s pocket
- ✕Building insured at purchase price not replacement cost — $400K gap discovered during claim
- ✕No umbrella when high-risk tenant (restaurant, gym, daycare) operates in the building
- ✕Water/sewer backup excluded — most common commercial property claim not covered
We review your leases, verify your tenants' coverage, and identify every gap in YOUR policy as the building owner BEFORE quoting. No surprises after a claim. No coverage gaps discovered too late.
Get Building Owner Coverage →Watch: Landlord Insurance Explained
Why your tenant's insurance doesn't protect your building — and what does.
What Is Lessors Risk Only (LRO) Insurance?
LRO insurance is a specialized policy designed to protect commercial property owners who lease space to tenants — addressing risks that tenant insurance cannot cover.
Unlike traditional commercial property insurance designed for owner-occupied buildings, LRO insurance focuses on the unique risks landlords face when leasing to tenants. It is structured around lease relationships and tenant risk profiles, not just the physical structure.
When a customer slips in a tenant's restaurant and sues both tenant and landlord, the tenant's insurance defends the tenant. The landlord's LRO policy defends the landlord. When a fire shuts down a tenant space for six months, loss of rents coverage replaces the lost rental income.
Critical reality: Most tenant policies protect the tenant — not the landlord. When lawsuits name both parties, each needs their own coverage. Assuming tenant insurance protects you is the most expensive mistake commercial landlords make.
A Complete LRO Program Typically Includes:
- ✓General Liability Insurance
- ✓Commercial Property Coverage
- ✓Loss of Rents Coverage
- ✓Ordinance or Law Coverage
- ✓Umbrella / Excess Liability
Takes ~2 minutes · We verify requirements · Send options same-day
What Does LRO Insurance Cover?
Each component addresses specific landlord liability and income protection needs that tenant policies do not cover.
General Liability (Landlord Coverage)
Protects landlords from bodily injury and property damage claims arising from tenant spaces, common areas, and building structure — even when the incident involves a tenant's operations. Covers slip-and-fall, injuries to tenant customers, structural issues, and legal defense costs.
Commercial Property Coverage
When the landlord owns the building, property coverage protects the structure and common areas from fire, storm, vandalism, and tenant-caused damage. Includes roofing, HVAC, electrical systems, parking lots, and structural components.
Loss of Rents Coverage
When a covered event makes a tenant space uninhabitable, loss of rents coverage replaces rental income during repairs. Critical for landlords whose mortgage payments depend on rental income. Covers lost rent, extra expenses, and continuing costs.
Ordinance / Law Coverage
When rebuilding after damage, building codes often require expensive upgrades. Without this coverage, landlords pay upgrade costs out of pocket — often 20-40% of total rebuild cost. Covers ADA compliance, demolition, and increased construction costs.
Umbrella Liability
When base liability limits are not enough — especially for landlords with high-risk tenants like restaurants, bars, or gyms — umbrella coverage prevents catastrophic out-of-pocket exposure. Extends all underlying limits by $2M to $10M.
Takes ~2 minutes · We verify requirements · Send options same-day
Common Landlord Coverage Gaps
These are the gaps most landlords don't discover until they file a claim — and by then it's too late.
Vacancy Periods
Coverage may lapse or exclude claims during vacancy. Many standard policies reduce or eliminate coverage when a unit sits empty for 30–60 days, leaving landlords exposed between tenants.
Short-Term Rental Restrictions
Standard policies may exclude Airbnb and short-term tenants. If you allow or are considering short-term rentals, your policy must explicitly cover that use — or claims will be denied.
Liability Limit Gaps
Base limits are often insufficient for high-risk tenant types. Restaurants, bars, gyms, and medical offices generate claims that regularly exceed standard $1M per-occurrence limits.
Water Backup Damage
Often excluded or sublimited in standard property policies. Sewer and drain backup is one of the most common commercial property claims — and many landlords discover the exclusion only after a loss.
Takes ~2 minutes · We verify requirements · Send options same-day
LRO Insurance for Every Commercial Property Type
Different property types create different tenant risk profiles. We structure LRO programs tailored to your specific tenants and building use.
Retail Strip Centers
Office Buildings
Industrial Warehouses
Shopping Centers
Mixed-Use Properties
Commercial Condos
Multi-Tenant Buildings
Restaurant Buildings
Own a different property type? Not sure? Start a quote and we'll help you figure it out.
How Much Does Lessors Risk Only Insurance Cost?
LRO insurance costs vary significantly based on property type, tenant risk profile, location, and coverage limits. Here are typical annual ranges.
| Property Type | Property Value Range | Est. Annual Premium | Key Cost Driver |
|---|---|---|---|
| Small Commercial Property | Under $1M | $2,500 - $15,000/yr | Tenant type & location |
| Multi-Tenant Retail / Office | $1M - $5M | $15,000 - $80,000/yr | Number of tenants |
| Shopping Center / Large Building | $5M - $20M | $50,000 - $200,000/yr | Tenant risk mix |
| Large Commercial / Mixed-Use | $20M+ | $200,000 - $500,000+/yr | Claims history & complexity |
Key LRO Insurance Pricing Factors:
Want to Know Your Exact Cost?
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7 Lessors Risk Insurance Mistakes That Cost Landlords Millions
These are the gaps we find most often when reviewing landlord insurance programs — and the ones most likely to result in devastating, uninsured losses.
Relying on Tenant Insurance Alone
Tenant insurance protects the tenant — not the landlord. When lawsuits name both parties (which is standard practice), each needs their own coverage. Assuming tenant insurance protects you creates catastrophic exposure.
Missing Additional Insured Requirements
Leases should require tenants to name the landlord as additional insured on tenant policies with primary and non-contributory language. Without proper endorsements, tenant policies won't respond to landlord claims.
No Loss of Rents Coverage
When a fire shuts down a tenant space for six months, the landlord loses six months of rent. Without loss of rents coverage, landlords must continue paying mortgage, taxes, and operating expenses with zero rental income.
Liability Limits Too Low for Tenant Risk
Landlords leasing to restaurants, bars, gyms, or medical tenants face significantly higher liability exposure. Base $1M limits are rarely sufficient for high-risk tenant profiles. Umbrella coverage is essential.
No Umbrella Liability Policy
When a serious injury occurs in a tenant space — especially in restaurants, bars, or fitness centers — claims easily exceed $1M-$2M in base limits. Umbrella coverage of $2M-$10M costs $2,000-$5,000/year but provides critical protection.
Weak Lease Insurance Language
Leases should specify minimum tenant insurance limits, require additional insured endorsements, mandate 30-day notice of cancellation, and require certificate of insurance before occupancy.
Outdated Property Valuations
Commercial property values and rebuilding costs have increased 30-50% since 2020. Landlords who haven't updated property valuations in 3+ years are almost certainly underinsured and will face coinsurance penalties after a major loss.
We check every one of these in our free policy review.
Get Building Owner Coverage →Takes ~2 minutes · We verify requirements · Send options same-day
Tenant Risk Profiling
Not all tenants create the same risk. We analyze your tenant mix to determine the right liability limits and coverage structure for your specific exposure.
Lower Risk
- • Professional offices
- • Accounting firms
- • Insurance agencies
- • Tech companies
Moderate Risk
- • Retail stores
- • Hair salons
- • Dry cleaners
- • Daycares
Higher Risk
- • Restaurants
- • Medical offices
- • Fitness centers
- • Auto repair shops
Highest Risk
- • Bars & nightclubs
- • Hookah lounges
- • Gun ranges
- • Cannabis dispensaries
Your tenant mix directly affects your premium, required limits, and available carriers. We profile every tenant before quoting.
Free Lease & COI Review
We review your lease insurance requirements and tenant certificates of insurance to confirm tenants are carrying adequate coverage and properly naming you as additional insured. Gaps in lease language and COI tracking are the number one source of uninsured landlord losses.
Lease Language Review
We audit your insurance requirements to make sure they are enforceable and complete.
COI Verification
We verify tenant certificates match lease requirements including additional insured status.
Lapse Tracking
We flag when tenant policies expire or lapse so you can enforce compliance immediately.
Takes ~2 minutes · We verify requirements · Send options same-day
How We Build Your LRO Insurance Program
Our process is designed to get you the right coverage structure — not just the cheapest price. Here is exactly what to expect.
Review Current Coverage
We review your existing policies, lease requirements, and lender insurance specifications to identify gaps and opportunities.
Profile Tenant Risk
We evaluate your tenant mix, occupancy types, and risk profiles to determine the right coverage limits and structure.
Review Leases & COIs
We audit your lease insurance requirements and tenant certificates of insurance to confirm compliance and flag gaps.
Shop Multiple Carriers
We submit your application to multiple A-rated carriers that specialize in commercial property and LRO insurance.
Video Quote Walkthrough
We walk through your LRO options on video — limits, exclusions, loss of rents triggers — in plain English.
Bind & Issue Certificates
Once you approve, we bind coverage and issue certificates to your lenders and tenants. Your policy is ready to work.
Why Commercial Landlords Choose Direct Insurance Services
We are commercial landlord risk advisors — not generalists who occasionally write an LRO policy.
Tenant Risk Profiling
We evaluate your tenant mix — restaurants, bars, gyms, medical, retail — to determine the right liability limits and coverage structure for your specific risk exposure.
Lease & COI Review
We review your lease insurance requirements and tenant certificates of insurance to confirm tenants are carrying adequate coverage and properly naming you as additional insured.
Video Coverage Walkthrough
We walk through your LRO options on video — limits, exclusions, loss of rents triggers, what matters for your property — in plain English, not insurance jargon.
Multi-Carrier Access
We access multiple carriers who specialize in commercial property and LRO insurance — including markets for high-risk tenant mixes and large portfolio landlords.
See How We Review Your Coverage
Watch Patrick walk through a real commercial policy review on video — so you know exactly what you're buying before you commit.
What Our Clients Say
Real feedback from business owners we have helped protect.
“They reviewed my contract requirements before quoting and caught two endorsements I was missing. My old agent never did that.”
Michael R.
General Contractor · Colorado
“The video quote review made everything clear. Our board finally understood what we were paying for and why. We reduced our premium by 18%.”
Sarah T.
HOA Board President · Texas
“I needed proof of insurance for a job starting Monday. They bound my policy the same day and had my COI sent within hours.”
David L.
Electrical Contractor · Illinois
Get Lessors Risk Insurance by State
Landlord liability laws, tenant insurance requirements, and LRO coverage structures vary by state. We are licensed in 29 states.
Our Insurance Carrier Partners
We compare quotes from 30+ A-rated carriers to find you the best combination of coverage and price for your commercial properties.
Progressive
Contractor & Commercial Auto
Hippo
Commercial Property
CNA
General Liability & E&O
Chubb
High-Value Commercial
Travelers
Workers Comp & Bonds
Mutual of Omaha
Group & Specialty
Nationwide
Business Owner Policies
Openly
Landlord & Property
AIG
Excess & Surplus Lines
John Hancock
Life & Benefits
BBB Accredited
What We Need to Quote Fast
Have these details handy and we can typically return options same-day.
- 📍Property address
- 📅Year built
- 🏢Occupancy type
- 🔧Recent updates/renovations
- 📋Prior claims
Don't have everything? No problem — start the form and we'll gather what we need.
Takes ~2 minutes · We verify requirements · Send options same-day
Ready When You Are
We'll review your leases, compare carriers, and walk you through your LRO coverage options.
Takes ~2 minutes · We verify requirements · Send options same-day
No obligation · Free quotes · Licensed in 29 States
Other Commercial Insurance We Specialize In
We apply the same carrier access, COI process, and video quote reviews to these industries.
Contractor Insurance
General liability, workers' comp, and commercial auto for contractors.
Learn More →Restaurant Insurance
Liquor liability, property, and workers' comp for food service businesses.
Learn More →HOA Insurance
Master policies, D&O, and fidelity bonds for homeowners associations.
Learn More →Commercial Landlord Insurance Gaps Guide
The 5 most common insurance gaps commercial landlords don't know they have — and how to close them before a claim hits your bottom line.
Download Free Guide →