Lessors Risk Only

TWFG Commercial Business School Lessors Risk Only Learning Objectives To understand the basic Commercial and Habitational LRO risk exposures To be familiar with the common coverages provided in carrier enhancements for this class of business To be aware of the admitted market appetite for this class To be able to successfully complete ACORD applications

TWFG Commercial Business School Lessors Risk Only Glossary LRO (Lessors Risk Only) Vacancy Preferred Lease Contract Lessor’s Leasehold Interest Ordinance or Law

TWFG Commercial Business School Lessors Risk Only Exposures in General General Liability Property Housekeeping Age & Condition Additional Insured Status Roofs & Electrical Types of Tenants Types of Tenants Vacancy

TWFG Commercial Business School Lessors Risk Only Business Income When choosing Business Income, the insured must select one or more of the three options. Those with “Rental Value” apply for LRO risks: Business Income including “Rental Value” Business Income other than “Rental Value” “Rental Value”

TWFG Commercial Business School Lessors Risk Only Carrier Enhancements Fairly generic. Most offer some additional limits on specific coverages such as: Ordinance or Law Debris Removal and Utility Services-Direct Damage Coverages of Note: Tenant Move Back Expenses Lessor’s Leasehold Interest

TWFG Commercial Business School Lessors Risk Only Carrier Appetite Habitational: Very little appetite in the admitted markets Some appetite for Apartments, but guidelines are tough and no Tier 1 or Tier 2 availability Some rental dwelling capacity with USLI

TWFG Commercial Business School Lessors Risk Only Carrier Appetite Commercial LROs: Some appetite in the admitted markets. Bank or Office LROs are acceptable to most our carriers Some appetite for commercial condos (business occupancy) and manufacturing LROs

TWFG Commercial Business School Lessors Risk Only Preferred SIC Codes All preferred risks in this category fall under SIC code 6512 Support Document Located on the Branch & GA websites

TWFG Commercial Business School Lessors Risk Only Submission Checklist A submission checklist is the easiest way to ensure that all exposures have been accounted for and addressed Support document is available on the Branch & GA website

TWFG Commercial Business School Lessors Risk Only Case Study This segment includes a Case study. For those Branches participating in the Certified Commercial Branch Agency (CCBA) Program you will need to complete and pass in order to receive credit for this segment. For Branches not participating, the Case Study is optional For GA agents the Case Study is optional. The Case Study material will be available on the Branch and GA portals RETURN COMPLETED CASE STUDIES TO MARK GLAUG @ mglaug@twfg.com

TWFG Commercial Business School Lessors Risk Only QUIZ

TWFG Commercial Business School Lessors Risk Only 1. Name three critical exposures (GL or Property) that need to be analyzed for this class of business.

TWFG Commercial Business School Lessors Risk Only Name three critical exposures (GL or Property) that need to be analyzed for this class of business. Age and Condition of Building Tenants Roof Vacancy Housekeeping

TWFG Commercial Business School Lessors Risk Only 2. Name three of the four preferred elements of a landlord lease contract.

TWFG Commercial Business School Lessors Risk Only Name three of the four preferred elements of a landlord lease contract. Each tenant carries CGL form “A” rated carrier with $1M/$2M Landlord listed as AI on all tenants’ CGL policy Landlord granted WOS status on each tenants’ CGL policy Each tenant provides COI and AI endorsement to the landlord

TWFG Commercial Business School Lessors Risk Only 3. What is Ordinance or Law coverage?

TWFG Commercial Business School Lessors Risk Only 3. What is Ordinance or Law coverage? It covers the increased cost of repairs or reconstruction due to changes in building codes that were not in place at the time of the original construction.

TWFG Commercial Business School Lessors Risk Only Name 3 critical items from the LRO Submission Checklist

TWFG Commercial Business School Lessors Risk Only Name 3 critical items from the LRO Submission Checklist Dates and details of updates Complete square footage information Complete tenant listing Verification of preferred lease contract components Verifying that a current sprinkler cert has been issued Analysis of all additional property coverages needed

TWFG Commercial Business School Lessors Risk Only How will the carrier view the tenants’ operations in regards to acceptability of the risk?

TWFG Commercial Business School Lessors Risk Only How will the carrier view the tenants’ operations in regards to acceptability of the risk? The carrier will likely only write the risk if all of the tenants are classes of business that the carrier would also write

TWFG Commercial Business School Lessors Risk Only Questions???