Lessors Risk Only Insurance (LRO) Missouri and Arkansas

We write lessor's risk policies with Auto-Owners, Travelers, Liberty Mutual, The Hartford, and Barton Mutual. Because we're an independent agency, we shop your building across all of our markets rather than fitting it into one carrier's appetite — different carriers price the same building very differently depending on age, construction, and tenant mix.

Usually, yes. Most carriers will schedule multiple locations on a single policy, which simplifies billing, keeps renewal dates aligned, and often earns a multi-location credit. If one of your buildings has a higher-hazard tenant or an older roof, we may recommend placing it separately so it doesn't drag up pricing on the rest of the schedule — that's a judgment call we make property by property.

The three we see missed most often are water back-up, sign coverage, and equipment breakdown. Water back-up covers damage from sewer and drain backups, which standard property forms exclude — and it's one of the most common losses commercial landlords actually have. Sign coverage protects exterior signage, which is often excluded or sub-limited on the base policy. Equipment breakdown covers HVAC systems, boilers, and electrical panels when they fail mechanically rather than from a covered peril like fire — a big exposure when the landlord owns the building systems.

Yes, and your lease should require it. Your lessor's risk policy covers your building and your liability as the owner — not your tenant's business operations, inventory, or equipment. A strong lease requires each tenant to carry general liability coverage, name you as an additional insured, and provide a certificate of insurance. Carriers give better pricing to landlords with these lease requirements in place, and we can review your lease's insurance clause as part of your quote.

It can, and it should. Loss of rents coverage replaces your rental income if the building is damaged by a covered loss and tenants can't occupy their space during repairs. Make sure the limit reflects your actual annual rents and allows enough time for a realistic rebuild — 12 months is common, but larger buildings may need 18 or 24.

Absolutely — and we strongly encourage it. Many small business owners are either underinsured (gaps in coverage that could result in major out-of-pocket losses) or overpaying for coverage they don't need. Bring in your current policy or declarations page and one of our agents will conduct a no-obligation coverage review. We'll tell you honestly what looks good, what concerns us, and what options you have. We do this all the time and love helping business owners understand what they actually have.

Often yes, but options narrow with age. Several of our carriers are actively seeking buildings 40 years old and newer, and older buildings can still qualify when the roof, wiring, plumbing, and HVAC have been updated — documentation of those updates is what underwriters want to see. If your building doesn't fit standard markets, we can look at specialty options.

It depends on the building: value, construction, age, location, tenant mix, protection (sprinklers and alarms), and loss history all drive the premium. Industry averages hover around $2,000 per year for the liability side alone, but a full package with building coverage typically runs higher. The fastest way to get a real number is to let us quote it across our markets.

Lessor's risk isn't a separate type of policy so much as a way of writing coverage for a specific kind of insured: a building owner who leases space to tenants rather than occupying it. Most LRO accounts are actually written on a commercial package policy or businessowners policy — the difference is in how it's structured and rated. An LRO account is underwritten around the building and the tenant mix, with liability focused on your exposure as the owner (common areas, structural systems, premises maintenance) rather than business operations.

The practical difference shows up in eligibility and pricing. Carriers typically consider a building lessor's risk when the owner occupies 25% or less of the space. If you occupy more than that — say you run your business out of half the building and lease the rest — you're generally rated as an owner-occupant with a tenant exposure instead. Getting this classification right matters, because it affects which carriers will quote you and what you pay.

Vacancy is one of the biggest coverage traps in commercial property insurance. Most property forms include a vacancy clause: if the building has been vacant beyond a set period — commonly 60 consecutive days — coverage for certain losses like vandalism, theft, and water damage is restricted or eliminated, and other losses may be paid at reduced amounts. Many building owners don't discover this until after a claim is denied.

If your building is vacant or about to be, tell us before the vacancy clock runs out. Options include a vacancy permit endorsement on your existing policy or a vacant building policy written for that exposure. And if you're between tenants on a multi-tenant building, partial vacancy usually doesn't trigger the clause — but it's worth confirming where your policy draws the line rather than assuming.