Commercial general liability and property coverage for office, warehouse, light industrial building owners is referred to by insurance carriers as Lessors Risk Only (LRO). It is a desirable risk for the carriers to underwrite right now.
Since the risk is essentially the building and common areas, there are “few moving parts” that can go wrong. Those moving parts that do exist are easily inspected, controlled & corrected. Class of construction, vacancy rates, wind exposure, and tenant mix all matter.
The insurance premiums for these NON-habitation properties continue to be very competitive. Premiums have declined over the past 3 years while coverage enhancements have broadened. In a tough leasing market one way to show added value to your building owner client is to be sure that this overhead item is subject to quote every 2-3 years.