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, 2016 1pm 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 emailed to registrants for additional information. If you have any questions, please contact Customer Service at 1-800-926-7926 ext. 10.
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Instructors: Sidney G. Saltz, Esq. Sidney G. Saltz, P.C. Jordan C. May, Esq. Frascona, Joiner, Goodman and Greenstein, P. C.
What are the purposes of a lease insurance clause? What types of insurance or coverages are involved? 6
What standards should we look to? What is ISO? How do we know we re getting the right coverage? 7
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
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
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
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
Scope, Exclusions and Limits Tenant improvements Who should insure? 12
Coverage for Indirect Losses What is an Indirect Loss? Business Income Rental Income 13
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
Measure of Recovery Replacement cost vs. actual cash value What is replacement cost? What is actual cash value? 15
Measure of Recovery Tenant improvements Computer and media loss Coinsurance Deductible 16
Scope, Exclusions and Limits Combined single limit/aggregate Occurrence vs. claims made 17
Accessing another party s coverage Contractual liability coverage Additional insured 18
Certificate of Insurance vs. full policy ACORD Value and reliability of forms 19
Getting back to allocation of risk concept Avoiding inconsistent (and inefficient) insurance obligations Waiver of Subrogation Primary Insurance 20
Sidney G. Saltz, Esq. sid@sgsaltz.com Jordan C. May, Esq. jordan@frascona.com 21