Landlord Insurances

The Lessor is responsible to ensure their commercial property is insured, much like you would your own home. In some cases, depending on lease documentation, the Lessor will be able to recover some of the cost associated with their building insurance policy, where specifically relating to the property. Other common types of insurance often included on a building insurance policy are public liability and business interruption. Though these are important for a Lessor to maintain as part of their policy, they are not recoverable from the Lessee as part of outgoings. (refer to our video last month about outgoings for more info)

Tenant Insurances

The Lessee is required as part of most lease agreements, to hold public liability insurance and plate glass insurance. It is also important that the Lessee have their own business insurance policy which protects their cotenants, business interruption and more depending on the business or industry.