Tenants’ insurance obligations

The guidance note on tenants’ insurance obligations provides expert insights into the essential insurance requirements that tenants must navigate in commercial leasing. Covering a range of insurance types commonly mandated by landlords, this note highlights critical legal considerations under current property law. Practitioners must understand the scope and implications of these obligations to effectively advise tenants and landlords alike.

Topics Covered

• Public liability insurance
• Plate or float glass insurance
• Insurance of the fitout of the premises
• Insurance of the landlord’s property in the premises
• Other common insurance requirements
• Evidence of insurance
• Blanket insurance policies
• Insurance policies in the name of both parties

Essential Insights

• Evaluate landlord demands for public liability insurance amounts and industry trends affecting coverage levels.
• Consider nuanced risks relating to plate or float glass insurance and tenant liability for window damage.
• Understand why fitout insurance may be required even when the fitout is tenant-owned.
• Recognise the complexities involved in insuring landlord property within leased premises and related liabilities.
• Review challenges and practical adaptations needed for blanket insurance policies across multiple locations.