Property damage

The Lessee is responsible for obtaining insurance on all of their personal property; this makes sense since they are in the best position to know the replacement cost of their equipment and property.

For small tenants, it’s important to make sure that they get insurance so that if there is damage to the property, they can still stay in business and thus pay the required Rent to be on the Premises.

Business interruption

If the business is disrupted by an insured event, the insurance will provide money to the Lessee.

For small tenants, it’s important to make sure that they get insurance so that if there is damage to the property, they can still stay in business and thus pay the required Rent to be on the Premises.

No representation of adequate coverage

The Lease will state the minimum amount of insurance required by the Lessee. The Lessee, however, may have to pay for more comprehensive coverage or coverage with high limits based on their insurance policy. Therefore, the Lessee should determine what amount of insurance is appropriate for their business and only use the standards set forth in the Lease as a minimum.