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Drafting Better Commercial General Liability Insurance Requirements
The insurance section of a lease is often the weakest part of what may otherwise be a very sophisticated document. A landlord generally does not want to impose obsolete or otherwise nonsensical requirements on its tenant, and a tenant generally does not want to promise to do things that are impossible. But both can regularly be found in lease insurance provisions.
Leasing attorneys tend to be at a double disadvantage with respect to insurance requirements. On the one hand, they may lack the knowledge of insurance policies and industry practices needed to create coherent and appropriate contractual insurance requirements. On the other, they may address this problem by relying on the client's insurance broker or consultant. But these professionals are not usually attorneys, and the fact that they have a more detailed knowledge of insurance does not mean that they will know how best to describe in a contract what should be required.
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