Lessors Risk Insurance for Retail Strip Malls: What Owners Should Know
- Nate Jones, CPCU, ARM, CLCS, AU
- Nov 9
- 2 min read
Owning a retail strip mall comes with unique risks. From multiple tenants to high foot traffic, property owners face potential liability claims and property damage that can lead to significant financial loss. That’s where Lessors Risk Insurance (LRI) comes in. This specialized coverage is designed to protect landlords who lease space to tenants. In this guide, we’ll explain what LRI covers, why it’s critical for retail strip mall owners, and how Wexford Insurance can help you secure the right policy at the best rate.
What Is Lessors Risk Insurance?
Lessors Risk Insurance is a specialized policy designed for property owners who lease space to tenants. It typically includes:
Property Coverage – Protects your building against fire, vandalism, storms, and other covered perils.
General Liability – Covers bodily injury or property damage claims from third parties on your premises.
Loss of Rental Income – Helps replace lost income if your property becomes uninhabitable due to a covered event.
Why Retail Strip Mall Owners Need LRI
Retail strip malls often have multiple tenants and high customer traffic, which increases liability exposure. Common risks include:
Slip-and-Fall Accidents in common areas
Property Damage caused by tenants or customers
Fire or Water Damage affecting multiple units
Legal Costs from lawsuits related to injuries or negligence
Without LRI, these incidents could result in significant out-of-pocket expenses that threaten your investment.
Key Coverages to Look For
When shopping for Lessors Risk Insurance for retail strip malls, make sure your policy includes:
Building Coverage – Protects the physical structure.
General Liability – Covers injuries and property damage claims.
Loss of Income – Provides financial protection during repairs.
Tenant Improvements – Optional coverage for upgrades made by tenants.
Additional Endorsements – Such as flood or earthquake coverage if applicable.
Factors That Affect Premiums
Your insurance cost will depend on:
Location – Areas prone to natural disasters or crime may have higher rates.
Building Size & Age – Larger or older properties often cost more to insure.
Tenant Type – High-risk businesses (restaurants, gyms) can increase premiums.
Security Measures – Fire alarms, sprinklers, and surveillance can lower costs.
How Wexford Insurance Can Help
At Wexford Insurance, we specialize in commercial property coverage for retail strip malls. Our team works with multiple carriers to find the best policy for your needs and budget. Whether you own a single strip mall or a portfolio of properties, we’ll help you:
Compare Multiple Quotes from top-rated insurers
Customize Coverage based on your property and tenant mix
Save Money with bundled policies and risk management strategies
Conclusion
Lessors Risk Insurance is a must-have for retail strip mall owners. It protects your property, shields you from liability claims, and ensures your investment remains profitable even when unexpected events occur. Contact Wexford Insurance today to secure the right coverage and protect your commercial property.