Lessor

Who is the lessor? The lessor is the one who owns the property. The lessor provides the use of the property by the leasee. An example is the landlord who owns the building where your business is located.You would pay rent to this person/entity.

A lessor can also be the lease holder on a vehicle. You may payments on the vehicle but it is not registered in just your name. The lessor also has an ownership in the car. At the end of the term there is an agreed upon buy-out for purchasing the vehicle.

There is a big difference between a leinholder and a lessor. If you are not sure then bring your paperwork to your agent or broker. If you have a lease agreement for your business then it would be a good idea to have the broker review the requirements you have. You may be responsible for items such as damage to your storefront glass and lettering. You need to be be sure that your insurance has adequate coverage or that you choose to self-insure this type of item as a matter of choice.

There have been instances in court whereby the lessor is held responsible for paying the liability in a court case. You do not want surprises in your business whereby you find yourself without the necessary coverage. Talk to your broker or agent.