Negotiating Commercial Lease Casualty Provisions: Insurance, Termination Rights, Tenant Improvements

A live 90-minute premium CLE video webinar with interactive Q&A

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Thursday, November 3, 2022

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

Early Registration Discount Deadline, Friday, October 7, 2022

or call 1-800-926-7926

This CLE webinar will advise leasing counsel structuring casualty provisions in commercial leases. The panel will discuss how insurance may affect a casualty event, how casualty provisions may affect landlords' and tenants' termination rights, and how to best preserve tenant improvements. The panel will address best practices in negotiating these provisions to protect their stakeholders.


Commercial leases will typically include a casualty provision that identifies the circumstances that obligate a landlord and tenant to restore the leased premises following a casualty event when the damage is extensive and sets forth when the parties can terminate the lease.

The effect of insurance is a significant consideration in assessing a casualty event. Since most, but not all, casualty events are covered by property insurance, the landlord's insurance on the real estate and the tenant's insurance on the personal property located on the premises will both have a bearing on resolving the event.

But, it is essential to consider situations that appear to be a casualty event, such as COVID-19 lockdowns, which most insurers have interpreted as not being covered under their policies. As such, landlords and tenants should review how both casualties are defined in their agreements and what their insurance policies include as exceptions when negotiating a lease.

While termination rights arise most often when the premises are destroyed, a landlord may have a right to terminate based on how long damage may take to repair or when a percentage of the property is rendered untenantable, or in the event the landlord's property insurance does not cover the damage.

Tenants who seek to limit the landlord's right of termination want to restrict these non-total loss provisions. Tenants concerned with the impacts of potential casualty events and enjoying the flexibility of relocating their business should consider including additional termination rights in the lease.

Many tenants renovate and improve properties at substantial cost and time. Tenants may incur significant losses if the landlord has broad termination rights arising out of casualty events and property damage, including the right to terminate a lease in case of a casualty with minor uninsured damage to the premises. Tenants should consider including a threshold restoration cost for the landlord to have the right to forgo restoration of the premises and terminate the lease.

Listen as our expert panel discusses casualty provisions, the interplay of insurance, and how landlords and tenants should approach termination rights in commercial leases.



  1. Casualty provisions in commercial leases
    1. Insurance interplay
    2. Termination rights
      1. Tenant considerations
        1. Improvements
      2. Landlord considerations
  2. Best practices


The panel will address these and other key topics:

  • How does the lease define casualty, and does this match what insurance policies cover?
  • What limitations on landlord termination rights in a casualty event should tenants consider?
  • How can tenants protect investment in improvements during a casualty event?


Saxton, Bryan
Bryan K. Saxton

Rosenberg Martin Greenberg

Mr. Saxton’s practice primarily involves commercial real estate acquisitions; dispositions; retail, office, and...  |  Read More

Additional faculty
to be announced.
Attend on November 3

Early Discount (through 10/07/22)

Cannot Attend November 3?

Early Discount (through 10/07/22)

You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. Strafford will process CLE credit for one person on each recording. All formats include course handouts.

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