In the Spotlight: The Use of a Captive Insurance Company By a Commercial Tenant

This article addresses what it means for a tenant to self-insure or obtain insurance through a captive, and how a landlord and tenant can modify their lease accordingly.

10 minute read November 26, 2010 at 10:54 AM
By
Brian J. Levin
In the Spotlight: The Use of a Captive Insurance Company By a Commercial Tenant

In a typical commercial lease, a landlord will require a tenant to carry a minimum amount of general liability insurance (e.g., $3 million per occurrence and $3 million general aggregate) and will also require that the insurance carrier meet certain standards, such as a minimum policyholder rating and financial size (as rated by an agency such as AM Best).

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