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Chapter 25

Practice Notes Forms

Form 25-36

Insurance Addendum to Lease

[Long Form]

Lease

Date:

Landlord:

Tenant:

This insurance addendum is part of the lease.

A.Tenant agrees to—

1.Maintain the property and/or liability insurance policies required below (mark applicable boxes) and such other insurance coverages and/or higher policy limits as may be required by Lienholder during the Term and any period before or after the Term when Tenant is present on the Premises:

Type of Insurance or Endorsement

Minimum Policy or Endorsement Limit

General Liability Insurance Policies Required of Tenant:

¨

Commercial general liability

Each occurrence:

$____________

 

 

General aggregate:

$____________

Or

 

 

 

¨

Business owner’s policy

Each occurrence:

$____________

 

 

General aggregate:

$____________

Required Endorsements to Tenant’s General Liability or Business Owner’s Policy:

¨

Designated location(s) general aggregate limit

 

$____________

¨

__________________________________

 

$____________

Include any other desired endorsements. See chapter 17 in this manual.

Additional Liability Insurance Policies Required of Tenant:

¨

Workers’ compensation

Statutory limit

 

¨

Employer’s liability

$____________ each accident for bodily injury by accident/each employee for bodily injury by disease/bodily injury by disease for entire policy

 

¨

Business auto liability

$____________

 

¨

Excess liability

$____________

 

 

Or

 

 

¨

Umbrella liability

(occurrence basis)

$____________

 

 

 

 

Property Insurance Policy Required of Tenant:

¨

Commercial property insurance
written on a causes of loss—special form (formerly known as “all risks” form)

100 percent of replacement cost of (a) all items included in the definition of Tenant’s Rebuild­ing Obligations and (b) all of Tenant’s furni­ture, fixtures, equipment, and other business personal property located in the Premises

Or

 

 

 

¨

Business owner’s policy

100 percent of replacement cost of (a) all items included in the definition of Tenant’s Rebuild­ing Obligations and (b) all of Tenant’s furni­ture, fixtures, equipment, and other business personal property located in the Premises

Required Endorsements to Tenant’s Causes of Loss—[Special Form/Business Owner’s] Policy:

¨

Business income and additional expense

Sufficient limits to address reasonably antici­pated business interruption losses for a period of ____ months

¨

Equipment breakdown (formerly
boiler and machinery)

$____________

 

¨

Flood

$____________

 

¨

Earth movement

$____________

 

¨

Increased limits of ordinance or law coverage to cover increased cost of
construction

$____________

 

¨

Increased limits of debris removal

$____________

 

¨

Plate Glass

Sufficient limits to cover plate glass

¨

Increased limits for signs

Sufficient limits to cover exterior signage

Include any other desired endorsements. See chapter 17.

2.Comply with the following additional insurance requirements:

a.The commercial general liability (or business owner’s property policy) must be (i) written on an occurrence basis, (ii) endorsed to name of Landlord, Landlord’s property manager, if any, and Landlord’s Lienholder, if any, as “additional insureds,” (iii) include contractual liability under  Coverage A sufficient to respond to a broad-form indemnity, (iv) if Tenant operates multi­ple locations, be endorsed with a Designated Location(s) General Aggregate Limit endorsement, and (v) be primary and noncontributory with Landlord’s liability insurance coverage.

b.The commercial property insurance policies must contain (i) a waiver of sub­rogation clause in favor of the party not carrying the commercial property insurance [,/and] (ii) waivers of subrogation of claims against Landlord and Lienholder [include if applicable: [,/and] (iii) coverage for agreed value to eliminate the coinsurance clause] [include if applicable: and (iv) coverage for replacement cost].

c.Certificates of insurance and copies of any additional insured and waiver of subrogation endorsements must be delivered by Tenant to Landlord before entering the Premises and thereafter at least ten days before the expiration of the policies.

3.Obtain the approval of Landlord and Lienholder with respect to the following:  the forms of Tenant’s insurance policies, endorsements and certificates, and other evidence of Tenant’s Insurance; the amounts of any deductibles or self-insured retentions amounts under Tenant’s Insurance; and the creditworthiness and ratings of the insurance companies issuing Tenant’s Insurance.

B.Landlord agrees to maintain the property and/or liability insurance policies required below (mark applicable boxes) during the Term:

Type of Insurance

Minimum Policy Limit

¨

Commercial general liability

Each occurrence:

$____________

 

(occurrence basis)

General aggregate:

$____________

¨

Commercial property insurance
written on a causes of loss—special form (formerly known as “all risks” form)

100 percent of replacement cost of the [Shopping Center/Building] exclusive of foun­dation, footings, infrastructure, sitework, and the rebuilding requirements of all lessees, and will include waiver of subrogation referenced in paragraph A.2.b.