Maryland Business Lessors Risk Insurance
If you own a commercial property and the majority of which is leased to other business owners, you need Maryland business lessors risk insurance to protect you from liability arising from the activities of your tenants.
At Balderson Insurance, we are an independent insurance broker with access to several of the top insurers in the state. We work hard to find you the right insurance product to meet the needs of your business. Call us today at (301) 874-0772 for further information and a free quote.
What is Lessor’s Risk Insurance?
A lessor’s risk policy is not to be confused with the general liability policy you have on your commercial property. It is for liability that results specifically from the lessee’s business activities. Some examples include:
- Damage/theft/loss to the lessee’s contents or property located within the building
- Injuries sustained by a lessee or his/her employees
- Injuries to the lessee’s customers during the course of business
- Loss of the lessee’s business income
- Breakdown of the lessee’s equipment
To qualify for a lessor’s risk policy, the property owner typically needs to have no higher than a 25% vacancy in the building. In other words, 75 percent of your square footage should be leased to third party clients. The policy premium will depend on several factors; including:
- Overall square footage of the building
- Age of the building and materials used in its construction
- Type(s) of businesses your lessees are involved in
- Number of employees your lessees have
Some carriers will only insure up to a maximum of 30,000 square feet and certain older buildings or buildings in higher risk areas may be deemed uninsurable.
Finding Lessor’s Risk Insurance in Maryland
Insurance companies that underwrite lessor’s risk policies do not typically work directly with commercial building owners. To obtain this type of insurance, you will usually need to go through an insurance broker that works with specialized business insurers. At Balderson Insurance, we have been providing insurance products for business owners since 1996. If you need lessor’s risk insurance for your commercial property, contact us today to get started.