Does My Tenant’s Insurance Policy Protect Me As A Landlord?

If you’re the landlord for a commercial property, you’ve probably noticed a clause in your policy requiring your tenants to name you as additional insured on their general liability insurance. Does that mean their insurance covers you? Do you need insurance if your tenant’s policy covers you?

Let’s take a look at these questions and more.

What Does “Additional Insured” Mean?

Before we can answer them, however, we need to know what “additional insured” means. It’s not the same as having your own insurance policy or being named insured. In fact, it usually only comes into play in a very specific situation.

If the tenant causes property damage or bodily injury, and you’re named in the suit solely because you are the landlord, then your “additional insured” status means the tenant’s policy will cover you, too. Though this situation is fairly common, it’s only a small fraction of the reasons you might need insurance. It’s a far cry from a robust insurance policy, and you still need your own policy.

Why You Still Need Insurance

This named insured status won’t cover anything you—as the landlord—are responsible for. For example, if your tenant’s employee runs through a pothole in the parking lot, damaging their car, they might sue you for the damages without even mentioning the tenant. 

Likewise, if there’s a slip-and-fall due to a leaky pipe or uneven concrete, then your tenant’s insurance won’t cover you. In that case, a problem with your building—the building you’re responsible for maintaining—caused the injury. At that point, your status as a landlord is not the only reason you’re being named in the lawsuit.

Even if your tenant has workers’ compensation insurance, there’s nothing stopping an injured party from coming after you if they believe you’re responsible. Worse still, the workers’ compensation insurance may pay for the coverage then subrogate because they think you’re responsible.

Conclusion

For all these reasons and more, landlords increasingly ask their tenants to have more than the bare minimum insurance. Still, you might be unsure how much coverage you should ask them to buy, or how much coverage you need.

That’s why you should reach out to your trusted independent insurance agent. If you don’t have a trusted independent insurance agent, or would like a second opinion, feel free to reach out to D&A Insurance! Also, if you’d like to check out our Florida commercial property insurance quote and information page here and get more information for yourself about commercial property insurance policies be our guests!