Legal Question in Business Law in California

Re: Business Insurance

Common sense and good business practice: of course. If the lease requires it, yes.

Re: Business Insurance

The law does not require you to do so, but the landlord will probably insist. Many landlords will refuse to rent to commercial tenants unless they purchase insurance. If your lease requires you to get insurance then you must comply.

Re: Business Insurance

As opposed to someone else paying for your insurance? The Tooth Fairy isn't going to pay it. Your landlord requires liability and fire insurance. You would be foolish beyond belief to allow anyone to do any work for you without your having workers' compensation insurance.

Re: Business Insurance

Insurance comes in all kinds. What kind are we talking about here? More often than not, a commercial landlord will insist that a tenant buy and maintain a tenant's policy of some kind, usually including public liability and some kinds of hazard coverage.

Also, commercial leases come in different kinds. As you move away from an office-suites or full-service kind of building to a triple-net lease, the owner's expectations as to the tenant's insurance burden will increase.

In conclusion, let me add that the tenant not only must "pay for" the insurance the landlord expects the tenant to carry; the tenant generally is expected to go out and shop for the insurance, to complete the requisite applications, and to be the primary insured, generally with the landlord as an "additional named insured" under the policies.