Otherwise known as commercial tenant insurance, tenant legal liability insurance is a type of commercial general liability insurance that keeps your business safe against daily operational risks within a rented space.

Usually, it covers the payments of claims and lawsuits associated with third-party bodily injury and property damage.

Landlords typically request you purchase a tenant legal liability insurance policy before they are willing to lease their space to you. 

Common Tenant Legal Liability Claims Examples 

Consider the following real-world claims examples to give you a clearer understanding of how tenant legal liability insurance coverage can protect your business: 

1. Bodily Injury Claim
   While browsing your store, a customer (we’ll call them Jane) trips over an item that appears to have fallen from the shelf. Jane sprains her wrist and decides to sue your business for bodily injury. Jane is successful with her claim, but thankfully the bodily injury section of your tenant legal liability insurance pays the medical and legal fees, equalling $5,000. 
2. Vandalism Claim
   You lock your rented office space for the night and go home. While you’re asleep, somebody vandalizes your business premise. Fortunately, none of your office equipment is harmed. However, the walls have been spray-painted, and a vast window has smashed. You call your landlord to tell them about the incident. You then claim on your tenant legal liability insurance which covers the cost of replacing the window and professionally removing the graffiti, totalling $15,000.
3. Water Damage Claim
   You are decorating your office space. As you’re drilling a hole, you accidentally hit a water pipe. The resulting water onslaught destroys the carpet in your office. Fortunately, your tenant legal liability insurance policy pays for the carpet repair, which ended up costing $15,000.