Lessor's Risk on a BOP
Posted: Wed Dec 07, 2011 12:54 pm
My boss and I have a disagreement regarding a Lessor’s Risk. Our Insured owns several properties under different entities, one of the properties is a convenience store. He only owns the building and the tenant currently carries GL & Property on the premises. We currently have this location written on a BOP for our Insured. I am able to write this policy on a package as a Lessor’s Risk Only for about $1200 cheaper. However, my boss thinks that it needs to stay on a BOP, because he feels he needs all the bells & whistles the BOP offers, such as Employee Dishonesty, etc. My boss says that if one of our Insured’s employees was to steal the rent receipts from the tenant or something to that nature, then the Employee Dishonesty would cover that. I feel that our Insured needs to have the entity he is operating under that owns the building (and several others) at this location insured with a BOP (which would cover any employee dishonesty and any of the locations he owns because the employee dishonesty would be in respects to the entity – not the particular location as a Lessor’s Risk) and then this location insured separately as a Lessor’s risk with only liability & property. I realize this is confusing, so please let me know if I need to clarify anything and thanks ahead of time for any advice.