Tenant Liability Insurance Clause
(Commercial Lease)

Summary

This tenant liability insurance clause may be included in a commercial lease to require the tenant to procure and maintain commercial general liability insurance. This template contains practical guidance, drafting notes, and optional clauses. Commercial liability insurance provides coverage for the cost of defending and resolving claims or lawsuits (by judgment or settlement) seeking damages for injury or damage to the person or property of another. In addition to commercial liability insurance, a tenant under a commercial lease is typically required to procure property insurance as well as any other insurance (such as business interruption insurance) that is necessitated by the nature of the tenant's business and its use of the premises. For further guidance, see Insurance Considerations in Commercial Leasing (Tenant) and Indemnity and Other Risk Allocation Mechanisms in Commercial Leases. For a full listing of Practical Guidance content relating to due diligence for commercial real estate financing, see Commercial Real Estate Financing Due Diligence Resource Kit. For further information on commercial leasing, see Industrial Leasing Resource Kit, Office Leasing Resource Kit, Restaurant Leasing Resource Kit, and Retail Leasing Resource Kit. See also Junior Associate Real Estate Resource Kit (Commercial Leasing).