Insurance Addendum to Lease
[Short Form]
Lease
Date:
Landlord:
Tenant:
This insurance addendum is part of the lease.
A.Tenant agrees to—
1.Maintain the following coverages:
a.Commercial property insurance written on a causes of loss—special form (formerly known as “all risks” form) covering Tenant’s personal property, fixtures, and leasehold improvements in the Premises, and naming Landlord as “Building Owner Loss Payable.”
b.Business income and extra expense property insurance naming Landlord as an “additional insured” and covering income and ongoing expenses, including rent, for a period of at least twelve months.
c.Commercial general liability insurance written on an occurrence basis, including contractual liability, covering Tenant’s operations within the Premises, naming Landlord, Landlord’s property manager, if any, and Landlord’s Lienholder, if any, as “additional insured,” and having limits of not less than $1,000,000 each occurrence and $2,000,000 general aggregate.
d.Business auto liability insurance written on an occurrence basis and having a combined single limit of not less than $1,000,000.
e.Workers’ compensation insurance in the statutory amount and employer’s liability insurance having limits of not less than $500,000 each accident for bodily injury by accident, $500,000 each employee for bodily injury by disease, and $500,000 bodily injury by disease for entire policy. Both policies must have a waiver of subrogation in favor of Landlord.
2.Deliver certificates of insurance and copies of any additional insured and waiver of subrogation endorsements to Landlord before entering the Premises and thereafter at least ten days before the expiration of the policies.
B.Landlord agrees to maintain—
1.Commercial property insurance written on a causes of loss—special form covering the building in which the Premises is located.
2.Commercial general liability insurance written on an occurrence basis, including contractual liability, covering Landlord’s operations within the building in which the Premises is located and having limits not less than $2,000,000 each occurrence and $4,000,000 general aggregate.
C.Landlord and Tenant agree that—
1.The commercial property insurance policies maintained by them will contain
(a) optional coverage for agreed value to eliminate the coinsurance clause, (b) optional coverage for replacement cost, (c) increased limits of ordinance or law coverage to cover increased cost of construction, (d) increased limits for debris removal coverage, and (e) a waiver of subrogation clause in favor of the party not carrying the commercial property insurance.
2.The commercial general liability insurance will be primary to the maintaining party and not contributory to any similar insurance carried by the other party and will contain a severability-of-interest clause.