Landlords Increasingly Looking to Shift Insurance Obligations to Tenants

Landlords Increasingly Looking to Shift Insurance Obligations to Tenants | George Grace

Landlords have recently become more aggressive in trying to shift some of the costs of insurance that they traditionally carried onto their tenants. In a large commercial building, the cost of all of these policies can be significant. Essentially, the insurance requirements increase the cost of leasing space. Tenants should be wary of the extra costs these insurance requirements can impose. A lease renewal I’m currently involved with showcases this new approach. Under its existing lease, the tenant was required to carry standard liability insurance covering the leased premises, as well as property losses for the tenant’s furniture and equipment.

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