Almost all commercial leases require the tenant to have adequate insurance, even though the landlord almost always carries their own umbrella insurance. Most commercial leases require that a tenant have enough insurance to provide coverage of at least $1,000,000.00 per occurrence and at least $2,000,000.00 in the aggregate.
The Risks of Non-Compliance
Having adequate insurance is wise to protect your assets and business, but failing to maintain the minimum insurance required by a lease will result in a breach of the lease. In most cases, a breach of the insurance provision will place you in default, which could allow the landlord to terminate the lease and/or initiate eviction proceedings.
Protecting Your Commercial Lease
The insurance provision of a commercial lease is just one of many critical clauses that require detailed review and negotiation.
If you would like to discuss how we can help you draft, review, and/or negotiate a commercial lease on your behalf, please contact Kapadia Naik & Farhoudi or call us at 770-881-8081.