As a building owner it is incumbent upon you to care for your building and the tenants inside them, and insurance is one tool at your disposal to accomplish that. The following set of articles represents some insight from a tenant’s perspective: what the tenant should be taking care of with respect to their own insurance needs. As an owner, you should be aware of this so that your insurance plan dovetails appropriately with the tenant’s perspective and responsibilities.

Disclaimer: These articles are intended to raise questions to review with your insurance provider or legal advisor. This article is not an insurance sales solicitation, legal advice or to be considered a comprehensive evaluation of all tenant risks.
Provided by Sterling Insurance Associates Ltd. – a consulting company

Protect Yourself as a Tenant

Firstly, why have insurance?

• Provides the financial resources to restore your property and put your operations back in business as quickly as possible after an event, and
• To pay for damages owed to other parties you or your employees are responsible for

What should I insure?

My Property – the property I brought onto the leased premises, and any modifications made to the leased premises for my use, such as:

• Property I own – office contents, business furniture and equipment, computer equipment
• My business records and data records
• Cost to restore your business after a loss; business interruption and extra expense coverage; in case the leased premises becomes unusable
• Tenants’ Improvements – building improvements installed in your leased premises by you or by the Landlord as part of your lease (the improvements might have been taken over by you from the prior Tenant)

Liability to Other People – Property Damage and Bodily Injury

• Premises – protection for individuals injured while on the premises, if you are responsible
• Damages to other peoples’ property from your business operations, if you are responsible
• Non-Owned automobile coverage, in case an employee on business is operating their vehicle without valid liability coverage

The Landlord’s Property – Tenants’ Legal Liability

• Damage to the physical “space” you lease or rent requires insurance,
  • the leased “space” isn’t “My Property”
  • the leased space is not normally covered by business liability coverage, as the space is in your “care, custody or control”
• So, coverage for Tenants’ Legal Liability is needed – which is normally added in the Liability Section of the Tenants’ policy