Commercial Lease Negotiations: Property and Liability Insurance, Proof of Coverage, AI and Loss Payee Issues

Strafford

One of the more complex and least understood areas of commercial leasing involves provisions regarding insurance and indemnities for both third-party claims and first-party claims. These complex risk allocation issues include liability and property coverage, additional insured, and certificates of insurance. With respect to property insurance, counsel must identify the potential casualty loss exposures relevant to the particular situation and the scope of the insurance policy at issue when drafting the insurance requirements to apply to the other party. One of the key issues in CGL coverage is the ability to access the other party’s coverage in face of the contractual liability exclusion and other limits to the policy. The parties are better served ensuring insurance coverage for contractual indemnification under the lease by obtaining additional insured status.
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This week Mark Stark shows a video clip from Warren Buffett speaking on investing in residential real estate and all that you need to know


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