commercial lease negotiations: property and liability...
TRANSCRIPT
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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