Don’t Limit Parties Protected by 'Additional Insured' Term

Sometimes a lawsuit stems from someone being injured in your tenant’s space. Savvy shopping center and office building owners know that they can protect themselves by requiring the tenant to name them as an “additional insured” on their liability insurance policies. But if your lease requires only that the party identified in the lease as the “Landlord” be named in the tenant’s policy as an additional insured it won’t give insurance coverage to everyone needing protection.

So say in the lease that the tenant must name you and all of your related parties—also known as “Landlord Parties”—in its liability policy as “additional insureds.” Landlord Parties should include:

·         You, as the property owner;

·         Managers, officers, directors, shareholders, partners, members, and employees;

·         Lenders; and

·         Successors, assignees, affiliates, and subsidiaries of all the above parties.

For model lease language that can make sure all of your related parties and their successors and assignees are properly protected under the tenant’s liability policy, see “Expand Parties Covered in 'Additional Insured' Term,” available to subscribers here.