Tread Carefully Through "Additional Name Insured" Territory

One of the many tricky terms in the insurance provisions of a lease is the common clause requiring that the landlord be included as an "additional named insured" in the tenant's commercial general liability policy ("CGL"). While it is always a good idea to have the insurance and indemnification clauses of a lease approved by an insurance broker or a risk management advisor comfortable with the commercial leasing insurance requirements in the jurisdiction in which the leased premises are located, it never hurts to have some understanding of the insurance requirements set out in the lease. This article focuses on some of the mistaken assumptions made about the protections bestowed by the phrase "additional named insured".