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Lease Insurance Clauses: Who and What Do They Protect?

Show DescriptionPaperwork by neilsphotoalbum on Flickr (CC BY-NC-ND 2.0) http://www.flickr.com/photos/neilsphotoalbum/727616574/

This show is a primer for landlords, tenants, property managers, lease administrators and anyone else who deals with commercial leases and the insurance provisions typically found in those leases.

In nearly 40 years of lease negotiations and litigation, I’ve found that it’s the insurance provisions in leases that are the least negotiated and understood provisions in commercial leases. Even the attorneys often say “it’s a typical insurance provision.”

  • But what do those insurance provisions really mean?
  • Who do they protect and who might they harm?
  • Once the lease is signed, is there anything the landlord or tenant need to do to ensure that the insurance provisions are fully enforceable and effective?
  • Does a landlord really need a certificate of insurance from the tenant’s insurance carrier?
  • What, if any, benefit does the landlord get from being named an additional insured?

Featured Guests

Ira Meislikira-meislik-linkedin
Managing Principal, Meislik & Meislik

Ira’s practice is focused on all aspects of commercial real estate transactions, with particular emphasis on retail real estate matters. He also works in the business transactions area, where he is known for his emphasis on using and structuring unincorporated entities. Ira writes about retail real estate law at his blog, Ruminations.

David B. EzraDavid Ezra
Principal, Berger Kahn

David has more than 20 years of experience successfully representing clients involved in insurance coverage, employment, business and class action litigation. He also serves as a mediator, having co-founded IDR Mediation Services in 2005.

As an author of hundreds of opinions who has been directly involved in the investigation and evaluation of countless insurance claims, David also serves as an expert witness in connection with insurance litigation.

David has been selected as one of Orange County’s Top 5 Attorneys in the area of Insurance for several consecutive years by OC Metro magazine. In 2009 and 2010, David was selected as one of Orange County’s Top 5 Attorneys in the Employment category. David also was named to the list of “Top 50″ Orange County Super Lawyers for 2010 – 2013 and is newly named to the list of “Top 100″ Southern California Super Lawyers for 2013.

Something to Add?

  • DK

    you asked “what’s the waiver”?

  • Thanks Howard for letting us share this podcast with our audience. http://blog.thebrokerlist.com/lease-insurance-clauses-protect/

  • true, the insurance premium are passed on to the tenant either directly or indirectly, but what if a Landlord obtains lower premium due to being a prudent landlord and not foolish giving waiver of subrogation and have good leases.

  • p.s. in the 90’s, we had a tenant sub contractor that burned our building down. Unfortunately we were underinsured by a million. We had a good lease without a waiver of subrogation. Our insurance company sued Tenant and their contractor. We piggy backed. Tenants liability insured did in effect reimburse our insurance company and the extra million we split 50/50 with our insurance company. Think twice before giving waivers.

  • Hank

    Is there transcript available for this podcast?

  • hfklaw

    Ernie, the only rule of thumb that I follow is that there are always exceptions to the rule. Your example where you received a bonus for being underinsured and not having a waiver of subrogation in place is more the exception to the rule. You got lucky and I wouldn’t count on that happening again. If it does happen again, I want you to come to Vegas with me. As a practical matter, a waiver of subrogation simply gives both parties some peace of mind……..at a cost.