Don’t let tenant insurance fall through the cracks

Business Manager, Stuart Commercial Inc., Sales Associate, ICR Commercial Real Estate
  • Nov. 22, 2021

Insurance is a difficult line item to justify sometimes until you need it.

Do I have enough? Can I actually access it if I need to? What happens if I just don’t have any?

Landlords co-ordinate building insurance because it’s their asset to protect.

Likewise, a wise tenant does their part to ensure their business is also covered.

Part of a tenant’s responsibility, as per any standard lease, is to prove they have appropriate liability insurance in place.

The lease will outline how much liability is required in addition to other landlord-specific requirements.

Not a one-time obligation

Tenants are asked for proof of liability insurance prior to possession but even in a professionally managed property they may not be implored to provide a valid certificate again.

In fact, according to my industry experts, tenants often let liability insurance lapse after they’ve shown their landlord proof that first time.

Leases are very explicit in the expectation that ongoing liability insurance is required.

Not maintaining liability insurance could put you in default of your lease if discovered.

Better safe than sorry

Like car insurance, house insurance, life insurance, why not play it safe?

Make sure your business isn’t exposed to unexpected liabilities which could potentially take you entirely out of the game.

Insurance can seem like such an intangible expense, but when it’s not there to access it can be devastating.

Long-term business planning needs to include preparing for worst-case scenarios and employing safety nets, like liability insurance.



I am a gal of all trades and wear a few hats at my current job though nothing quite as esteemed as my 1996 Unity Western Days Rodeo Queen crowned…

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I am a gal of all trades and wear a few hats at my current job though nothing quite as esteemed as my 1996 Unity Western Days Rodeo Queen crowned…

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