Posted on January 30, 2010.
I am a business owner and my tenants are supposed to have liability insurance through their lease. I have trouble trying to get them to get insurance because they think they do not need it, even those they have already agreed to legally obtain it. I have three questions, how can I make sure they get it and also, what are the possible legal implications for them (my tenants) and me (the owner) if they do not receive insurance responsibility? Am I likely to take legal action if one of my tenants are prosecuted?
If the commercial lease requires the tenant to provide proof of liability insurance and no insurance documents exist, the tenant is in breach of the lease.
The remedy is to send them a letter with a copy of the lease language stressing the liability insurance and say they have X time to obtain insurance or to have violated the lease agreement and face eviction.
The tenant has signed a legal and binding.
1. Add your lease to say that they do not purchase insurance and provide you with a certificate of insurance naming you as additional insured under their policy, then you have the right to purchase the insurance and add the payment of the bonus to their rent.
2. Everyone in every business needs liability insurance, because even if you did nothing wrong, you always have the risk of being prosecuted, and if this happens Liability Insurance pay the lawyer to defend you. The cost of defending a lawsuit may be a lot of 10 or even 100 thousand dollars. If you have no assurance that the cost will be out of your pocket, even if you win the trial.
3. The landowner is always at risk of being prosecuted for something like a slip and cause injury, even if the tenant is to be responsible for maintenance. A lawsuit against the tenant does not automatically mean that you are potentially liable, but generally the plaintiff's attorney will pursue the tenant and the landlord. In addition, you want your tenant to be insured so that the tenant is not bankrupted by the cost of defending a lawsuit.
A: I do not see why you care
about them, liability ins.
It affects only if they
a client who is injured make biz
with then.
b, you are 99.5% of the cost of liability
if tenant / client.
c, if you still feel adament about this,
prepare to buy with you
as beneficiary and
send them an invoice, a copy
lease.
d, why did not you ask to see a copy
their insurance policy before you
allowed them to sign a lease?
