What every New York commercial property owner needs to know.
While it is great you bought that small strip plaza or 5-unit commercial building but your tenants can get you involved in a lawsuit. But there is a way you can help avaoid that by using an “additional insured” endorsement on their insurance policy. Let me explain it.
You have a leased space to a beauty shop and while mopping the floor of hair, a new customer walks in and slips and falls, breaking their arm. If a lawsuit is pursued, the claimants attorney could (and should) sue the beauty shop & the landlord/owner of the property.
If you were the owner of this New York commercial property and was listed on your tenants insurance policy as an “additional Insured” then both parties being sued would be covered by the tenants liability insurance.
What every New York commercial property owner needs to know.
If you didn’t use the “additional insured” endorsement, then the owner of this commercial building would be putting in a claim on his/her own insurance policy. By using the additional insured endorsement on all your tenants insurance policies, you avoid putting claims in on your own insurance policy.
But you should also know that any slip and fall in a common area (like a parking lot), then the commercial building owner would have that claim on their own insurance policy. It is when a commercial tenant is negligent in some way, that this additional insured endorsement is valuable.
I would never recommend any commercial lease, where the tenant does NOT name the landlord as an additional insured. Being smart with buying commercial real estate is about protecting your investment wisely.
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