Commercial building owner’s key insurance protection is using the additional insured clause in the tenants insurance policy. Here is what this does – give’s you/your company liability protection for the negligence of your tenant. Example, your restaurant tenant causes a patron to crack a tooth and have emergency surgery of $7,000! The attorney sues the tenant but also you, as the entity owning the premises.
If you are an additional insured on the tenants insurance policy, your own insurance will not be affected by this action. The liability claim will be defended by the tenants insurance company for both parties – because you have additional insured status on the tenants policy.
Every commercial building owner need to keep this in clause in their leases. It’s too important of a coverage NOT to have this with every tenant.