Final answer:
Lessor's contingency policy is mainly necessary for Lease Agreement Compliance. It safeguards the lessor's financial interests when a lessee cannot meet lease obligations, and indirectly benefits Property Valuation and Business Interruption, while Liability Coverage is a separate matter.
Step-by-step explanation:
Lessor's contingency policy is necessary primarily for Lease Agreement Compliance. Such a policy offers financial protection to lessors, or property owners, in case the lessee, or tenant, is unable to fulfill their lease obligations due to unforeseen circumstances. This can include the tenant's bankruptcy or insolvency, which might otherwise leave the lessor with unpaid rent and an unoccupied property, leading to financial losses. A lessor's contingency policy can cover these losses and ensure the property owner maintains a steady income stream from their property, thereby protecting their investment. Additionally, although less directly, this type of policy may contribute to areas such as Property Valuation by safeguarding the revenue generated from the property, which is often a consideration in assessing its value, and to Business Interruption by allowing the lessor to continue operations without significant financial setbacks. However, Liability Coverage is typically addressed by separate insurance policies and is less directly related to lessor's contingency policies.