Commercial Lease Negotiations: Property and Liability Insurance, Proof of Coverage, AI and Loss Payee Issues

Structuring Lease Provisions to Require Coverage and Receive Benefit of Coverage Provided

Recording of a 90-minute CLE webinar with Q&A


Conducted on Wednesday, October 19, 2016

Recorded event now available

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Program Materials

This CLE webinar will address casualty and liability insurance issues applicable to real estate leasing from the perspective of both landlord and tenant. The program will discuss the necessary coverage and recommend contract provisions to require insurance coverage and receive the maximum benefit of the coverage. The program will also address key coverage issues such as exclusions, proof of coverage, additional insured and loss payee parties, and primary/excess coverage.

Description

One of the more complex and least understood areas of commercial leasing involves provisions regarding insurance and indemnities for both third-party claims and first-party claims. These complex risk allocation issues include liability and property coverage, additional insured, and certificates of insurance.

With respect to property insurance, counsel must identify the potential casualty loss exposures relevant to the particular situation and the scope of the insurance policy at issue when drafting the insurance requirements to apply to the other party.

One of the key issues in CGL coverage is the ability to access the other party’s coverage in face of the contractual liability exclusion and other limits to the policy. The parties are better served ensuring insurance coverage for contractual indemnification under the lease by obtaining additional insured status.

Listen as our panel of real estate attorneys looks at casualty and liability insurance issues critical to landlords and tenants negotiating a real estate lease. The panel will discuss key coverages and contract provisions to require insurance coverage and receive the maximum benefit of the coverage. The program will also discuss other coverage issues relevant to commercial leases, including exclusions, proof of coverage, additional insured and loss payee parties, and primary/excess coverage.

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Outline

  1. Intro – nuts and bolts – common terms
  2. Interrelation between property and liability coverage
  3. Casualty insurance – liability insurance
    1. Scope and exclusions for losses specific to tenant and landlord
    2. Coverage for noncovered indirect losses
      1. Business interruption
      2. Rental income loss
    3. “All risk” vs. named or “special form” perils
    4. Measure of recovery (replacement cost vs. actual cash value)
      1. Tenant improvements
      2. Computer and media loss
      3. Coinsurance
  4. CGL Insurance
    1. Scope, exclusions and limits
    2. Accessing another party’s coverage
      1. Contractual liability coverage
      2. Additional insured
    3. Custody, care or control
  5. Certificates of insurance
  6. Matching indemnity and casualty restoration obligations with insurance

Benefits

The panel will review these and other key issues:

  • What are the relevant issues for the parties to consider in assessing the appropriate protection under a casualty policy?
  • What are best practices for drafting risk allocation and insurance provisions?
  • How can counsel ensure that contractually required AI coverage is satisfied by the named insured’s policy?

Faculty

Jordan May
Jordan May

Shareholder
Frascona Joiner Goodman and Greenstein
Sidney Saltz
Sidney Saltz

Founder
Sidney G. Saltz, P.C.

Mr. Saltz has been involved, on behalf of foreign and domestic clients, in all types of commercial real estate...  |  Read More

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