Indemnities in property leases - what tenants need to know

An indemnity is a promise or guarantee to compensate someone for loss or damage in specified circumstances. In commercial and retail leases, indemnity clauses are common, requiring tenants to cover losses that may arise from their occupation or use of the premises.

It is important for tenants to understand the implications of indemnity clauses before signing a lease, as these clauses can impact their financial and legal obligations.

What indemnities typically appear in leases?

In property leases, tenants are usually required to indemnify the landlord for any claims, losses, costs, or expenses the landlord incurs or becomes liable for in connection with:

• damage to property and premises caused by the tenant or their agents;