Commercial property insurance can help protect an insured building and eligible landlord-owned property after a covered physical loss.
Lessor’s risk insurance is designed for commercial property owners who lease buildings or spaces to tenants. It may combine building coverage with premises liability and loss-of-rental-income protection.
The appropriate policy depends on the building, occupancy, tenants, leases, construction, systems, property values, and ownership responsibilities.
Commercial property policies are not identical. Review the policy documents and confirm that ownership, occupancy, building values, leases, and tenant operations are accurately represented.
Building coverage may help pay to repair or replace an insured commercial structure after a covered physical loss.
Coverage can include walls, roofs, foundations, permanently installed fixtures, and qualifying building systems, subject to the policy.
Coverage may extend to eligible property owned by the landlord and used to maintain or operate the building.
Examples can include maintenance equipment, office contents, common-area furnishings, signs, and other scheduled property.
Lessor’s risk liability may help address covered claims involving bodily injury or property damage for which the commercial property owner is legally responsible.
Coverage may be important for common areas, parking areas, sidewalks, building systems, and landlord-controlled portions of the premises.
Rental-value or business-income coverage may help replace eligible rental income when covered physical damage makes insured space untenantable.
Coverage depends on the covered cause of loss, restoration period, limits, waiting period, and lease terms.
Equipment breakdown coverage may help with covered sudden mechanical, electrical, or pressure-system breakdown involving insured building equipment.
Eligible equipment may include boilers, electrical panels, HVAC systems, elevators, and other building machinery.
After a covered loss, current building codes may require upgrades beyond simply replacing damaged property.
Ordinance or law coverage may help with eligible demolition, undamaged portions, and increased construction costs, subject to selected limits.
Standard commercial property policies commonly exclude or restrict flood damage.
Separate flood insurance may be available based on the property, location, occupancy, and available insurance programs.
Earthquake and other earth-movement losses are commonly excluded from standard commercial property policies.
Separate coverage or an endorsement may be available based on location, construction, and underwriting requirements.
Vacancy can reduce or suspend coverage for certain losses under a standard policy.
Property owners should report changes in occupancy and explore vacancy permits or specialized vacant-building coverage when necessary.
Commercial excess liability may provide additional limits above scheduled underlying liability policies.
Additional limits may be appropriate for larger properties, high visitor traffic, contractual requirements, or substantial asset exposure.
Standard property and liability policies may exclude many pollution-related losses.
Older buildings, tanks, prior uses, mold, asbestos, or tenant activities may create environmental exposures requiring separate consideration.
Major renovations, additions, or ground-up construction may fall outside ordinary property coverage.
Explore Builders Risk and Construction Insurance before construction begins.
Commercial property insurance does not cover every source of damage or financial loss. Depending on the policy, coverage may not apply to:
Review the covered causes of loss, exclusions, valuation provisions, deductibles, and protective safeguards.
A commercial lease may assign insurance and maintenance responsibilities between the landlord and tenant. It may require tenants to maintain:
The landlord’s policy generally does not insure all tenant-owned property or business operations. Lease terms should be reviewed with qualified legal and insurance professionals.
Commercial property and lessor’s risk pricing may be influenced by:
Accurate building and tenant information helps insurers evaluate the property and prepare a more useful proposal.
Office properties may have exposures involving multiple tenants, common areas, elevators, parking, professional occupancies, and building systems.
Retail properties may create higher visitor traffic, signage, parking, vacancy, tenant-improvement, and varied occupancy exposures.
Warehouse and industrial properties should be reviewed for tenant processes, stored materials, fire load, security, equipment, and environmental exposures.
Properties with residential units or combined residential and commercial occupancies may require specialized underwriting.
Explore Apartment Building Insurance.
The property owner’s policy generally protects the insured building, landlord-owned property, rental income, and landlord liability according to its terms.
It may not cover the tenant’s:
Landlords may require tenants to maintain appropriate commercial insurance and provide evidence of coverage.
Depending on the property and operations, consider:
Visit our Commercial Insurance page to explore additional coverage options.
Tell us the building location, size, age, construction, systems, occupancy, and ownership structure.
Share tenant types, occupied and vacant areas, annual rents, landlord responsibilities, and lease insurance requirements.
Compare building, liability, rental income, equipment, limits, deductibles, valuation terms, and exclusions.
Choose coverage suited to the building, tenants, leases, income exposure, contractual obligations, and budget.
Commercial property insurance can help protect an insured building and eligible landlord-owned property after a covered physical loss. Lessor’s risk insurance is designed for commercial property owners who lease buildings or spaces to tenants and may combine property, landlord liability, and rental-income protection.
Depending on eligibility, coverage may be available for office buildings, retail properties, shopping centers, warehouses, industrial buildings, mixed-use properties, and other commercial buildings leased to tenants. The building’s construction, condition, occupancy, and tenant operations affect underwriting.
Building coverage may help repair or replace an insured commercial structure after covered physical damage. Protection may include walls, roofs, foundations, permanently installed fixtures, and qualifying building systems, subject to the covered causes of loss, limits, deductible, valuation, and exclusions.
Lessor’s risk liability may help address covered claims involving bodily injury or property damage for which the commercial property owner is legally responsible. It may apply to common areas, parking lots, sidewalks, building systems, and other landlord-controlled portions of the premises.
Rental-value or business-income coverage may help replace eligible rental income when covered physical damage makes insured space untenantable. Coverage depends on the cause of loss, lease, restoration period, waiting period, selected limit, and policy provisions.
The landlord’s policy generally does not insure all tenant-owned inventory, furniture, fixtures, equipment, improvements, or business income. Commercial tenants should maintain coverage for their own property, operations, employees, and liability exposures.
Standard commercial property policies commonly exclude or restrict flood, earthquake, and other earth-movement losses. Separate policies or endorsements may be available depending on the property, location, construction, occupancy, and insurance provider.
Vacancy can reduce or suspend coverage for certain losses under a standard property policy. Property owners should promptly report material changes in occupancy and explore a vacancy permit or specialized vacant-building coverage when necessary.
Pricing may depend on building location, age, size, construction, replacement cost, systems, tenant types, occupancy, fire protection, natural-hazard exposure, rental income, prior claims, selected limits, deductibles, and endorsements.
You may need to provide the property address, construction, age, square footage, roof and system updates, replacement-cost estimate, tenant list, occupancy details, annual rents, leases, protective systems, current insurance, and loss history. Begin on our Get a Quote page.
