Most commercial leases require the tenant to carry Commercial General Liability (CGL), commonly $1,000,000 per occurrence and $2,000,000 aggregate on an occurrence basis, with the landlord named as an additional insured. Give the lease's insurance section to your agent before signing; once bound, your agent issues a certificate of insurance (COI) to the landlord.
Read the clauses
CGL limits, occurrence basis, additional insured, primary & non-contributory.
Use the right name
If you have an LLC, insure in the company name to protect limited liability.
Allow time
Commercial policies need underwriting, usually a few days.
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Common lease insurance requirements
Commercial General Liability (CGL)
Covers third-party injury or property damage at your premises. Common: $1M per occurrence, $2M aggregate.
Occurrence basis
Coverage tied to when the incident happened; what most landlords require.
Additional insured
The landlord (and sometimes the property manager) added by endorsement, often ISO "Managers or Lessors of Premises".
Primary & non-contributory
Your policy pays first, before the landlord's own insurance.
COI
Certificate of insurance issued by your agent to the landlord.
Whose name goes on the policy?
- Insure in the company name
- Protects limited liability
- You are usually listed as owner
- The landlord may want your name on the COI
- Use "you + LLC" as named insureds
- Names should match the lease
A real case: personal lease, company policy
A client signing a retail lease needed $1M/$2M CGL with the landlord as additional insured. He signed the lease personally and the LLC was registered under a relative. We had him added to the company as an owner, insured under "client + LLC", and the insurer approved within days. We sent the COI directly to the landlord.
Results depend on individual circumstances. Identifying details removed.
Frequently asked questions
Can my personal liability policy satisfy the lease?
Usually not. Personal liability excludes business activity; the lease requires commercial liability.
Do I need anything besides CGL?
It depends on the lease and business: property (often bundled as a BOP), workers' comp with employees, commercial auto.
How long does commercial coverage take?
It needs underwriting, usually a few days. Start before you sign.
This article is general information for California and is not a promise of coverage or claim payment. Coverage, pricing and terms depend on each insurer's policy and underwriting.