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I’m getting ready to lease a small office for myself and my partner. After lengthy negotiations, the landlord has agreed but has come back that he requires us to carry General Liability Insurance. Is that standard in the state of Florida? It was my understanding that the landlord’s commercial policy generally covers general liability on his premises. Any thoughts?

4 Thoughts on Do commercial renters typically need general liability insurance to lease an office?
  1. Reply
    Smiling
    August 19, 2011 at 10:32 pm

    I’m in SoCal and on my 3rd small business lease.
    The 1st one, the least required it, but they never checked.
    The 2nd & 3rd, they required me to show proof. On the most recent they even knew what date it expired and wanted updated docs.

  2. Reply
    mbrcatz
    August 19, 2011 at 10:36 pm

    Yes. I’ve insured lots of commercial building owners, and lots of commercial tenants, and I’ve NEVER seen a situation, in the past ten years, where the tenant was NOT required to carry general liability coverage in the lease.

    The landlord’s general liability insurance company pretty much across the board requires it.

    The POINT is, whatever you’re doing in that space, increases the liability hazard. At the very least, there will be people in that space (who can trip and fall) who would NOT have been in that space, if it wasn’t rented out. So yes, YOU need to carry that liability insurance. MOST of the time, you also have to name the landlord as “additional insured – lessor” on your policy as well.

    And it’s not just Florida, it’s everywhere in the USA.

  3. Reply
    nowland2235
    August 19, 2011 at 11:07 pm

    The landlord’s liability insurance covers…. guess what the landlord’s liability.

    So a customer walks into your business falls and hurts themselves, are you
    A) going to explain to them why they cannot sue you and why you didn’t need liability insurance, or
    B) are they going to go to an attorney and he will sue you regardless of your

    The answer is B and their attorney will put your landlord, you, your cleaning company, and your floor installer on the lawsuit.

    At that point would you want to make sure your covered, or hope your landlord will cover this for you (which by the way his policy will never ever cover your liability).

  4. Reply
    Tom Z
    August 19, 2011 at 11:36 pm

    “Do commercial renters typically need general liability insurance to lease an office?”

    Yes, without exception.

    “It was my understanding that the landlord’s commercial policy generally covers general liability on his premises.”

    That is correct as far as it goes but if something happens in your office you can be sued as well as your landlord. Your landlord’s general liability will protect him but it will provide no coverage for you and your partner.

    The good news – Depending upon what your business is, insuring an office occupancy is not very costly. And besides, it just makes good sense to have liability insurance whether the lease requires it or not.

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