Tenants insurance obligations under commercial leases

Most landlords will require their tenants to maintain insurances, and a lease will usually oblige the tenant to do so. But how often do the parties give thought to what the insurance provisions in the lease actually mean?

Types of insurances usually required

A landlord will generally require a tenant to maintain insurance policies covering:

• Public Liability. This policy covers the insured for any legal liability arising out of personal injury or property damage caused by the insured. The minimum amount of cover required will depend upon the nature and use of the premises but an amount of $20 million is not unusual in today's market.