commercial lease negotiations: property and liability...

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Presenting a live 90-minute webinar with interactive Q&A

Commercial Lease Negotiations:

Property and Liability Insurance, Proof

of Coverage, AI and Loss Payee Issues Structuring Lease Provisions to Require Coverage and Receive Benefit of Coverage Provided

Today’s faculty features:

1pm Eastern | 12pm Central | 11am Mountain | 10am Pacific

WEDNESDAY, OCTOBER 19, 2016

Jordan May, Shareholder, Frascona Joiner Goodman and Greenstein, Boulder, Colo.

Sidney Saltz, Founder, Sidney G. Saltz, P.C., Chicago

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Instructors:

Sidney G. Saltz, Esq.

Sidney G. Saltz, P.C.

Jordan C. May, Esq.

Frascona, Joiner, Goodman and Greenstein, P. C.

What are the purposes of a lease insurance

clause?

What types of insurance or coverages are

involved?

6

What standards should we look to?

What is ISO?

How do we know we’re getting the right

coverage?

7

Scenario 1: Tenant damages Landlord’s

property

Tenant is liable for damages under common law

Tenant has liability insurance; Landlord has

property damage insurance

Whose insurance pays?

8

Scenario 2: Landlord damages Tenant’s

property

Landlord is liable for damages under common

law

Landlord has liability insurance; Tenant has

property damage insurance

Whose insurance pays?

9

In each of these scenarios:

What does the lease provide?

What should the lease provide?

How can risks be allocated to have them covered

by insurance available at affordable costs?

10

Scope, Exclusions and Limits

Losses specific to Landlord

Building/Real Property

Contents/Personal Property

Losses specific to Tenant

Building/Real Property

Contents/Personal Property

11

Scope, Exclusions and Limits

Tenant improvements

Who should insure?

12

Coverage for Indirect Losses

What is an Indirect Loss?

Business Income

Rental Income

13

Standard risk vs. “all risk” or “special form”

“all risk” is not really all risk

Neither covers environmental problems, flood or

earthquake

Endorsements; eg. Agreed amount, building

ordinance, demolition

14

Measure of Recovery

Replacement cost vs. actual cash value

What is replacement cost?

What is actual cash value?

15

Measure of Recovery

Tenant improvements

Computer and media loss

Coinsurance

Deductible

16

Scope, Exclusions and Limits

Combined single limit/aggregate

Occurrence vs. claims made

17

Accessing another party’s coverage

Contractual liability coverage

Additional insured

18

Certificate of Insurance vs. full policy

ACORD

Value and reliability of forms

19

Getting back to allocation of risk concept

Avoiding inconsistent (and inefficient)

insurance obligations

Waiver of Subrogation

Primary Insurance

20

21

Sidney G. Saltz, Esq.

sid@sgsaltz.com

Jordan C. May, Esq.

jordan@frascona.com