Commercial lease insurance requirements
A commercial lease requires whatever its own insurance article says, so read that first; your lease may differ from any example. Three Salt Lake City leases filed with the SEC, used here as examples, each ask for general liability at $1 million to $2 million per occurrence naming the landlord as additional insured. One adds primary and noncontributory wording, two add a waiver of subrogation, and one sets the certificate forms and a carrier rating. In the two leases that address it, the landlord insures the building and the tenant's own contents and improvements are left to the tenant. Business income coverage can keep rent paid after a covered loss.
Updated . Written by Andre Beukers, principal at Redoubt, a commercial insurance agency in Salt Lake City, not a government office.
What insurance does a commercial lease require?
There is no standard answer outside the lease itself. Each lease has an insurance article, and the tenant's obligation is exactly what that article says. Three Salt Lake City leases that public companies filed with the SEC show how it reads in practice. A 2023 lease of office, production and warehouse space to Co-Diagnostics asks for $1,000,000 per occurrence and $2,000,000 aggregate. An office lease to Sera Prognostics, with Woodbury Corporation as property manager, and a lease of a building on 2200 West to Myriad Genetics each ask for $2,000,000 per occurrence. All three make the tenant name the landlord on the liability policy.
Beyond that, each lease adds its own items, and no one of them has every item. That is why the article in your lease, not a checklist, is the thing to send your agent.
- Co-Diagnostics: occurrence form, landlord as additional insured, primary and non-contributing wording, 30 days' notice to the landlord, renewal evidence 10 days before expiry
- Sera (Woodbury): $2 million per occurrence naming the landlord and the property manager as additional insureds; a mutual waiver of subrogation (section 11.03)
- Myriad (2200 West): $2 million per occurrence naming the landlord, its agents and parties it designates; a mutual waiver of subrogation; insurers rated at least A- and VII; ACORD 25 and ACORD 27 certificates by the commencement date
What does a sample commercial lease insurance clause look like?
Here is the whole tenant insurance section of the 2023 Co-Diagnostics lease in Salt Lake City, one of the shortest real clauses on file. Each sentence turns into a specific item on the policy or the certificate, and the second column of that translation is what your agent needs to see.
"Tenant, at its own expense, shall provide and keep in force liability insurance in the commercial general liability form ... with combined single limit coverage of not less than $1,000,000.00 and with a general aggregate limit of not less than $2,000,000.00 for each policy year. Tenant shall furnish Landlord with a certificate of such policy ... Such policy shall name Landlord as an additional insured and shall be primary and non-contributing with any insurance carried by Landlord. The policy shall further provide that it shall not be cancelled or altered without 30 days prior written notice to Landlord. Tenant shall furnish evidence of renewal of such insurance policies within 10 days before expiration of any such policy."
- "Occurrence basis" and the two limits: a general liability policy written on the occurrence form at $1M / $2M
- "Name Landlord as an additional insured": an endorsement on the policy, such as ISO CG 20 11, not a line typed on the certificate
- "Primary and non-contributing": primary and noncontributory wording the carrier has to provide on the policy, not only on the certificate
- "30 days prior written notice": only possible if the carrier endorses notice to the landlord; in Utah the certificate cannot promise it on its own
- "Within 10 days before expiration": a renewal certificate sent before the old policy ends, not after
What tenant insurance does a commercial lease require you to carry for your own space?
In two of the three leases, the landlord's policy covers the building and not what the tenant brings in or builds. The Myriad lease says so directly: the landlord "shall not be obligated to insure" the tenant's furniture, equipment, goods or supplies, or any leasehold improvements the tenant makes, "whether paid for by Lessor or Lessee." The Sera office lease leaves the tenant's property insurance to the tenant, "as Tenant may desire or require." Desire or not, nobody else is insuring it.
Improvements are the item tenants miss. Flooring, a buildout, a walk-in cooler or a salon's plumbing become part of a building you do not own. The standard ISO commercial property form covers them under business personal property as "your use interest as tenant in improvements and betterments," so the limit on a tenant's property policy has to include what was spent on the space, not only the equipment.
What insurance do you need for leased office space?
For a small office, the lease's requirements and the tenant's own exposures can fit in one policy. A business owner's policy combines general liability and commercial property; Insureon describes it as a policy that "bundles general liability insurance and commercial property insurance." The liability side carries the landlord's additional insured and primary wording; the property side covers computers, furniture and the tenant's improvements.
Three things push an office tenant beyond a basic package. A lease asking for $2,000,000 per occurrence, as the Sera and Myriad leases do, needs coverage that reaches that limit; check the per-occurrence limit on your quote. Employees bring workers' compensation, which a landlord may also ask to see. And professional firms have a professional liability exposure that the lease does not mention but a client contract might. Send the lease's insurance article to your agent before you sign, not after, because the limit and the endorsements are priced at quote.
How much does commercial tenant insurance cost?
There is no published figure for "lease insurance" as such; it is the cost of the policies the lease requires. The best dated figures are what one online broker reports its own small-business customers pay. Insureon, in pages updated in March and April 2026, reports an average of $45 a month for general liability, with annual premiums from $265 to $3,030, and an average of $83 a month for a business owner's policy. Insureon does not say what mix of businesses those averages cover; the figure that counts is a quote for yours.
The lease-specific endorsements can add to that. The ISO landlord additional insured form, CG 20 11, has its own "Additional Premium" line in the schedule, so a carrier can charge for naming the landlord. Ask for the quote with the lease's requirements included, so the price you compare is the price of complying.
Does business interruption insurance cover rent?
Yes, if rent keeps coming due and the shutdown was caused by a covered physical loss at your premises. The ISO business income form pays net income plus "continuing normal operating expenses incurred, including payroll," and rent you still owe may count as a continuing expense; the form also has a separate Rental Value option, which is the one a landlord buys. The trigger is narrow: the suspension "must be caused by direct physical loss of or damage to property at premises which are described in the Declarations." A slow season, a road closure without damage, or a premises not listed on the policy does not trigger it.
Whether rent is still owed after a fire depends on the lease. The Sera lease abates rent while the space is rebuilt: "a just and proportionate part of Base Monthly Rent ... shall be abated until the Leased Premises is repaired or rebuilt." Under a lease like that, abated rent is not a continuing expense, and the landlord's own rental income coverage carries the gap. That is why both landlords in these leases buy it: twelve months of rental income in the Sera lease and eighteen months of business income in the Myriad lease. If your lease has no abatement clause, ask your agent whether the business income limit on your quote covers the rent you would still owe.
When does the landlord need proof of the lease's insurance?
Before you get the space, in the lease that sets a date. The Myriad lease requires certificates "On or before the Commencement Date" and names the forms: an ACORD 25 for liability and an ACORD 27 for property, plus proof that the landlord is an additional insured and that the insurer recognizes the waiver of subrogation. Renewal evidence is due before expiry, ten days before in the Co-Diagnostics lease. A tenant who signs on Friday and wants keys Monday needs the policy bound, with the right endorsements, before the weekend.
A landlord asking for both liability and property proof, as the Myriad lease does, wants two forms: an ACORD 25 and an ACORD 27. What the certificate for the landlord must say, line by line, is covered on the certificate of insurance for a landlord page in this series.
Who pays for insurance on a commercial lease?
The tenant pays for its own policies: liability, its contents and improvements, and anything else the insurance article lists. The landlord buys the building insurance, and the lease decides who bears that cost. In the 2023 Co-Diagnostics lease, a gross lease, the landlord pays the building insurance directly; in any other lease, its rent and expense sections decide.
Can a landlord require 30 days' notice of cancellation on my certificate?
A lease can require it, but in Utah the certificate cannot create it. Utah Code 31A-22-1706 gives a certificate holder a right to notice only if the policy or an endorsement provides one. If your lease demands notice to the landlord, ask your agent whether the carrier will endorse it; if it will not, tell the landlord before you sign.
Can I use the policy I already have?
Yes, if its limits meet the lease and the carrier adds the landlord's endorsements. Send the agent the insurance article and the landlord's exact legal name; the answer is either a new certificate or a list of what must change first.
Where these answers come from
Each entry carries the exact words of the source so you can check it yourself. Forms and statutes change; read the current version before acting.
- 1. Commercial Lease Agreement, Ge Estate, LLC and Co-Diagnostics, Inc., 3215 S 300 W, Salt Lake City, 2023-09-18, section 15 (SEC EDGAR Ex. 10.1)
“Such policy shall name Landlord as an additional insured and shall be primary and non-contributing with any insurance carried by Landlord. The policy shall further provide that it shall not be cancelled or altered without 30 days prior written notice to Landlord.”
sec.gov, accessed October 3, 2026. Retrieved with WebFetch; SEC refuses curl without a registered user agent. Section 6 of the same lease: "This lease is a gross lease. Landlord shall be responsible for all Property Tax, Building Insurance and Utilities paid directly by the Landlord." - 2. Lease, Bay Bridge/Corporate, LLC and Myriad Genetics, Inc., 322 North 2200 West, Salt Lake City, section 8.1 (SEC EDGAR, Myriad 10-K exhibit filed 2024-02-28)
“Lessee shall, at Lessee's expense, obtain and keep in force during the Term of this Lease a policy of Commercial General Liability insurance insuring Lessee against any liability arising out of the use, occupancy or maintenance of the Premises and all areas appurtenant thereto.”
sec.gov, accessed October 3, 2026. The same section sets the limit at "not less than Two Million Dollars ($2,000,000) per occurrence". Retrieved with WebFetch. - 3. Lease, Bay Bridge/Corporate, LLC and Myriad Genetics, Inc., section 8.2, what the landlord does not insure
“Lessor shall not be obligated to insure either (a) any furniture, equipment, machinery, goods or supplies not covered by this Lease which Lessee may keep or maintain in the Premises or (b) any leasehold improvements, additions or alterations which Lessee may make or cause to be made upon the Premises, whether paid for by Lessor or Lessee”
sec.gov, accessed October 3, 2026 - 4. Lease, Bay Bridge/Corporate, LLC and Myriad Genetics, Inc., section 8.2, the landlord's property and business income insurance
“business income coverage in the event of a loss due to a covered peril for a period of not less than eighteen (18) months”
sec.gov, accessed October 3, 2026 - 5. Lease, Bay Bridge/Corporate, LLC and Myriad Genetics, Inc., section 8.3, certificates and insurer rating
“On or before the Commencement Date, Lessee shall deliver to Lessor certificates of insurance (for liability insurance, the standard ACORD Certificate of Insurance form (ACORD 25-9) and for property insurance, the standard ACORD Evidence of Property Insurance form (ACORD 27), or, in each case, any insurer-specific equivalent form)”
sec.gov, accessed October 3, 2026. The same section requires insurers "holding a 'General Policyholders Rating' of at least A- and a financial rating of seven (VII) or better" and certificates showing the landlord as additional insured and that "the insurer recognizes the waiver of subrogation". - 6. Lease, Bay Bridge/Corporate, LLC and Myriad Genetics, Inc., section 8.4, waiver of subrogation
“Lessee and Lessor each hereby release, relieve and waive their entire right of recovery against, the other for loss or damage arising out of or incident to the perils insured against under Section 8.2.”
sec.gov, accessed October 3, 2026 - 7. Office Lease, Eastland Regency, L.C. and Sera Prognostics, Inc., Salt Lake City, Woodbury Corporation as property manager, section 11.01 (SEC EDGAR, S-1 Ex. 10.20, 2021)
“commercial general liability insurance with respect to the Leased Premises, with a combined single limit of not less than Two Million Dollars ($2,000,000.00) per occurrence.”
sec.gov, accessed October 3, 2026. The same section begins "The policy shall name Landlord, property manager (i.e., Woodbury Corporation) and any other" persons designated as additional insureds. Retrieved with WebFetch. - 8. Office Lease, Eastland Regency, L.C. and Sera Prognostics, Inc., section 11.03, Waiver of Subrogation
“Each party hereto does hereby remise, release and discharge the other party hereto and any officer,”
sec.gov, accessed October 3, 2026. Retrieved with WebFetch; the sentence continues to release liability for insurable fire and casualty losses. - 9. Office Lease, Eastland Regency, L.C. and Sera Prognostics, Inc., section 11.02(b), the tenant's own property
“fire and casualty insurance coverage as Tenant may desire or require in respect to Tenant's personal property, equipment, furniture, fixtures or inventory”
sec.gov, accessed October 3, 2026 - 10. Office Lease, Eastland Regency, L.C. and Sera Prognostics, Inc., section 11.02(a), the landlord's rental income coverage
“Such insurance shall include twelve (12) months rental income coverage as well as such”
sec.gov, accessed October 3, 2026 - 11. Office Lease, Eastland Regency, L.C. and Sera Prognostics, Inc., section 17.01(a), rent abatement after casualty
“a just and proportionate part of Base Monthly Rent, Additional Rent and other charges payable by Tenant hereunder shall be abated until the Leased Premises is repaired or rebuilt.”
sec.gov, accessed October 3, 2026 - 12. ISO CG 20 11 12 19, Additional Insured – Managers or Lessors of Premises (FC&S copy)
“This insurance does not apply to: 1. Any "occurrence" which takes place after you cease to be a tenant in that premises.”
assets.touchpointmarkets.com, accessed October 3, 2026. The schedule on the same page lists "Designation Of Premises (Part Leased To You)", the additional insured's name, and "Additional Premium: $". - 13. ISO CP 00 10 10 12, Building and Personal Property Coverage Form, Your Business Personal Property (Nationwide E&S forms library)
“Your use interest as tenant in improvements and betterments. Improvements and betterments are fixtures, alterations, installations or additions: (a) Made a part of the building or structure you occupy but do not own; and (b) You acquired or made at your expense but cannot legally remove;”
forms.nationwideexcessandsurplus.com, accessed October 3, 2026. The host returns Access Denied to curl's default user agent; a browser user agent returns the PDF. - 14. ISO CP 00 30 10 12, Business Income (And Extra Expense) Coverage Form, definition of Business Income (Nationwide E&S forms library)
“Business Income means the: a. Net Income (Net Profit or Loss before income taxes) that would have been earned or incurred; and b. Continuing normal operating expenses incurred, including payroll.”
forms.nationwideexcessandsurplus.com, accessed October 3, 2026 - 15. ISO CP 00 30 10 12, Business Income coverage grant
“The "suspension" must be caused by direct physical loss of or damage to property at premises which are described in the Declarations and for which a Business Income Limit Of Insurance is shown in the Declarations.”
forms.nationwideexcessandsurplus.com, accessed October 3, 2026 - 16. Utah Code 31A-22-1706, Notice of cancellation, nonrenewal, or material change
“A certificate holder only has a right to a notice of cancellation, nonrenewal, a material change, or to a similar notice if the certificate holder has rights to the notice under the terms of the insurance policy to which the certificate of insurance refers, or under any rider, or endorsement to the insurance policy.”
le.utah.gov, accessed October 3, 2026 - 17. Insureon, Business owner's policy cost (page modified 2026-04-17), page description
“A business owner's policy (BOP) bundles general liability insurance and commercial property insurance, usually at a lower cost than if you purchased these policies separately.”
insureon.com, accessed October 3, 2026. A broker's description of the product it sells. - 18. Insureon, Business owner's policy cost (page modified 2026-04-17)
“The average cost of BOP insurance is $83 per month for Insureon's small business customers.”
insureon.com, accessed October 3, 2026. Insureon's figure for its own customers, not a market average. Quoted from rendered page text. - 19. Insureon, General liability insurance cost (page modified 2026-03-30)
“While Insureon's small business customers pay an average of $45 monthly for general liability insurance, 22% pay less than $30 each month, and 41% pay between $30 and $60 per month for coverage. Annual premiums range from a low of $265 to a high of $3,030.”
insureon.com, accessed October 3, 2026. Insureon's figure for its own customers, not a market average. - 20. Redoubt, General liability insurance, FAQ on whether general liability is required
“It is not universally required by law, but it is commonly required by someone else: a client contract, a landlord or venue, a general contractor, a vendor packet, or a license application such as a Utah contractor license.”
www.redoubt.insure, accessed October 3, 2026
A landlord will not hand over keys until the tenant's certificate arrives
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