Industrial buildings, whether warehouses, factories, or storage facilities, are valuable investments that come with significant risk. As an owner of a leased industrial property, it’s essential to take proactive measures to protect your assets.
Risk Reduction Strategies
- Conduct Regular Inspections:
- Inspect the property periodically for structural issues, fire hazards, or compliance violations.
- Address maintenance concerns promptly to avoid larger liabilities.
- Clarify Lease Responsibilities:
- Clearly define who is responsible for maintenance, repairs, and insurance in the lease agreement.
- Require tenants to carry liability and property insurance, listing you as an additional insured.
- Install Safety Features:
- Equip the building with fire suppression systems, security cameras, and proper signage.
- Ensure compliance with local safety and zoning regulations.
Recommended Insurance Coverages
- Lessor’s Risk Only (LRO) Insurance: Protects you from liability claims arising from tenant activities.
- Environmental Liability Insurance: Crucial if the tenant’s business involves hazardous materials.
By reducing risks and carrying comprehensive insurance, you can safeguard your industrial building and ensure long-term profitability.
