What Is Tenant Legal Liability Insurance Coverage?

What is Tenants Legal Liability Insurance?

Tenant's Legal Liability insurance coverage is an extension of Commercial General Liability

policy, which protects the insured in the event they are found liable for loss or damage to leased

or rented property space subject to terms and conditions of the policy.

Landlords typically request you have this coverage in place before they are willing to lease their

space to you, as it specifically extends to cover loss or damage to property caused by tenants to

a rented space.  They usually require proof of insurance in the form of a certificate of insurance

which list your coverage and limits. 

Common Tenant Legal Liability Claims Example

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.

Edit as per info from HUB July 22, 2024