LRO And/Or Commercial GL

Discussion in 'General Insurance Agent Discussions' started by ComIns, Sep 13, 2017.

  1. ComIns
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    ComIns New Member

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    If triplex owner has an LRO policy do they need a commercial general liability policy? Can someone highlight some of the differences and when having a GL in addition to LRO would be beneficial.

    Thank You.
     
  2. adjusterjack
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    adjusterjack Guru

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    A triplex owner would not need both.

    The LRO is sufficient for a residential landlord.

    The Commercial Liability and Property policies are geared to people who use there entire property for their own business operations or for larger scale apartment buildings.

    Google Lessors Risk Only and you'll find plenty of explanations of the coverage.

    It would help if you provide the reason you are asking.

    What is it you are trying to accomplish?
     
  3. ComIns
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    ComIns New Member

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    The person whom owns the Triplex has put the property in the name of his LLC. The LLC is single member and only for the 1 property. Because the property is in the name of the LLC generally speaking would it be recommended the business have a CGL or would LRO be sufficient in your opinion?
     
  4. adjusterjack
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    The LRO would still be the appropriate policy for the LLC.

    I suggest, however, that the Named Insured read something like:

    Triplex, LLC and Joe Blow, an individual.

    A landlord has day to day relationships with tenants and if he gets sued it's likely to be in his name only. If only Triplex, LLC is covered by the policy, the company could deny coverage to Joe Blow and leave him out in the cold.

    I hope Joe Blow realizes that an LLC doesn't protect him and his assets from his own acts.
     
  5. ComIns
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    ComIns New Member

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    Thank you I appreciate the information.
     
  6. VolAgent
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    VolAgent Guru

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    Considering most agents don't realize this...
     
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