Commercial Lease Negotiations: Property and Liability Insurance, Proof of Coverage, AI and Loss Payee Issues

Transcription

1 Presenting a live 90-minute webinar with interactive Q&A Commercial Lease Negotiations: Property and Liability Insurance, Proof of Coverage, AI and Loss Payee Issues Structuring Lease Provisions to Require Coverage and Receive Benefit of Coverage Provided WEDNESDAY, OCTOBER 19, pm Eastern 12pm Central 11am Mountain 10am Pacific Today s faculty features: Jordan May, Shareholder, Frascona Joiner Goodman and Greenstein, Boulder, Colo. Sidney Saltz, Founder, Sidney G. Saltz, P.C., Chicago The audio portion of the conference may be accessed via the telephone or by using your computer's speakers. Please refer to the instructions ed to registrants for additional information. If you have any questions, please contact Customer Service at ext. 10.

2 Tips for Optimal Quality FOR LIVE EVENT ONLY Sound Quality If you are listening via your computer speakers, please note that the quality of your sound will vary depending on the speed and quality of your internet connection. If the sound quality is not satisfactory, you may listen via the phone: dial and enter your PIN when prompted. Otherwise, please send us a chat or sound@straffordpub.com immediately so we can address the problem. If you dialed in and have any difficulties during the call, press *0 for assistance. Viewing Quality To maximize your screen, press the F11 key on your keyboard. To exit full screen, press the F11 key again.

3 Continuing Education Credits FOR LIVE EVENT ONLY In order for us to process your continuing education credit, you must confirm your participation in this webinar by completing and submitting the Attendance Affirmation/Evaluation after the webinar. A link to the Attendance Affirmation/Evaluation will be in the thank you that you will receive immediately following the program. For additional information about continuing education, call us at ext. 35.

4 Program Materials FOR LIVE EVENT ONLY If you have not printed the conference materials for this program, please complete the following steps: Click on the ^ symbol next to Conference Materials in the middle of the lefthand column on your screen. Click on the tab labeled Handouts that appears, and there you will see a PDF of the slides for today's program. Double click on the PDF and a separate page will open. Print the slides by clicking on the printer icon.

5 Instructors: Sidney G. Saltz, Esq. Sidney G. Saltz, P.C. Jordan C. May, Esq. Frascona, Joiner, Goodman and Greenstein, P. C.

6 What are the purposes of a lease insurance clause? What types of insurance or coverages are involved? 6

7 What standards should we look to? What is ISO? How do we know we re getting the right coverage? 7

8 Scenario 1: Tenant damages Landlord s property Tenant is liable for damages under common law Tenant has liability insurance; Landlord has property damage insurance Whose insurance pays? 8

9 Scenario 2: Landlord damages Tenant s property Landlord is liable for damages under common law Landlord has liability insurance; Tenant has property damage insurance Whose insurance pays? 9

10 In each of these scenarios: What does the lease provide? What should the lease provide? How can risks be allocated to have them covered by insurance available at affordable costs? 10

11 Scope, Exclusions and Limits Losses specific to Landlord Building/Real Property Contents/Personal Property Losses specific to Tenant Building/Real Property Contents/Personal Property 11

12 Scope, Exclusions and Limits Tenant improvements Who should insure? 12

13 Coverage for Indirect Losses What is an Indirect Loss? Business Income Rental Income 13

14 Standard risk vs. all risk or special form all risk is not really all risk Neither covers environmental problems, flood or earthquake Endorsements; eg. Agreed amount, building ordinance, demolition 14

15 Measure of Recovery Replacement cost vs. actual cash value What is replacement cost? What is actual cash value? 15

16 Measure of Recovery Tenant improvements Computer and media loss Coinsurance Deductible 16

17 Scope, Exclusions and Limits Combined single limit/aggregate Occurrence vs. claims made 17

18 Accessing another party s coverage Contractual liability coverage Additional insured 18

19 Certificate of Insurance vs. full policy ACORD Value and reliability of forms 19

20 Getting back to allocation of risk concept Avoiding inconsistent (and inefficient) insurance obligations Waiver of Subrogation Primary Insurance 20

21 Sidney G. Saltz, Esq. Jordan C. May, Esq. 21