Insurance

The type of insurance coverage a business owner should maintain is often dictated by a section in the rider to a lease agreement with the landlord.  Below are just a few examples of what to expect and a brief explanation of each.

Comprehensive Commercial General Liability Insurance

This policy covers the premises protecting both the tenant and the landlord as additional insureds.  The lease rider insurance section will detail the coverage limit amounts which are normally reflective of the type of business you have and type of space you are renting.

All Risk Insurance

This type of insurance may also be required covering the tenant’s furniture, fixtures, equipment, and the spaces mechanical systems, like HVAC and electrical.

Other Coverages

There are other coverages that might be required depending on the type of space and the type of business.  For example, glass insurance, business interruption insurance, umbrella, etc.

Miscellaneous Notes

I often recommend that a tenant shows the entire Insurance section of their lease to their insurance agent directly so that they can get the exact right policy required.

Up to date insurance certificates should be provided to the landlord upon policy renewals.

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Next week we’ll talk more about Attorneys. Read the post here.