About Lessors Risk Only Policies
Landlord insurance for commercial properties dates back to the 1920s when standard fire policies began adding legal liability for tenants' operations, but the industry formally embraced Lessors Risk Only (LRO) schedules after ISO released its standard LRO form in 1993 to address multi-tenant retail and office exposures.1
As triple-net leasing grew in the 2000s, insurers developed combination property/liability packages so building owners could meet lender covenants even when tenants carried their own general liability, codifying requirements for tenant certificates, hold harmless agreements, and rent-protection endorsements.2
Modern programs now extend to mixed-use corridors: specialty markets handle cooking, cannabis, or warehouse tenants by layering protective safeguards, giving landlords the flexibility to fill suites without sacrificing insurance compliance.3,4


