Legal Question in Business Law in California

Re: Tenents

You should require your tenants to carry appropriate insurance to cover premises liability associated with their guests. In addition, you can require the tenants to carry additional insurance as you see fit. Whatever you can negotiate with a tenant will be enforceable. Make sure the owners and landlords of the property (i.e. you) are added as "additional insureds" on the tenants' policies. This will cover your defense costs (attorney costs) and payment of a judgment in the event a lawsuit is filed on a covered event. Adding you as an additional insured is usually no added cost to the tenant (usually).

Re: Tenents

And by the way, your lease agreement should clearly spell out the required insurance. Let us know if you would like us to review and/or revise your lease agreement. The agreement should also contain an indemnity provision. If you don't have a written agreement at this time, or if you have a deficient one, you are living dangerously.

Re: Tenents

Yes, you should require the tenants carry their own insurance. Your insurance company may require it as a condition of paying any claims! There are forms, but you can do the same thing by adding an addendum to the lease which requires the tenants to carry a certain minumum of insurance and show you proof. Call me if you need me. (310) 806-9237

Re: Tenents

Usually, this is a requirement for commercial lessees. You can insure the common areas, but the tenants should insure against accidents on the premises and business liability. You should not be held responsible if a business on the leased premises acts improperly toward a customer, and the lease should mention that the tenant shall indemnify and defend you for such harm.