Tenant Legal Liability Insurance

Tenant Legal Liability Insurance

Are you running your business in a rented space and looking for the right coverage?

Good news – we’re tenant insurance experts. Let us make it fast, simple, and most importantly, affordable for you to get General Liability Insurance for commercial tenants.

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Zensurance - Commercial Tenant
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Claims Examples

Coverage

Problem: A customer trips over an item that fell off a shelf in your store and sprains their wrists. 

Outcome: The client successfully sues your business for bodily injury. The bodily injury coverage could cover the legal expenses and medical fees, totaling $5,000.

Coverage

Problem: After you’ve locked your office space for the night, your business is vandalized. While none of your office equipment is damaged, a large window has been smashed and the walls graffitied. 

Outcome: You notify the landlord of the incident. Your liability insurance could cover the cost to replace the window and professionally clean the walls, totaling $15,000.

Coverage

Problem: While decorating your office space, you accidentally drill a hole into a water pipe. Water damage destroys the carpeting.

Outcome: Your liability insurance could cover the cost to repair the carpet, totaling $15,000 in damages.

Tenant Legal Liability Insurance, Explained.

What is Tenant Legal Liability Insurance?

Tenant Legal Liability Insurance, also known as Commercial Tenant Insurance, is a form of Commercial General Liability Insurance that protects your business against the day-to-day risks of running a business within a leased space.

Tenant Legal Liability Insurance typically covers the lawsuits and payments of claims related to third-party bodily injury (e.g., slip-and-fall) or third-party property damage. Before you rent a space, it’s common for a landlord to require Tenant Legal Liability Insurance, so they’re indemnified if you (or one of your colleagues) cause any damage to their premises.

What does it cover?

Tenant Legal Liability Insurance typically includes coverage for legal costs and damages related to the following coverage areas:

  • Bodily Injury Liability: Injuries or damage to a third party resulting from your business operations.
  • Third-party property damage: Costs to repair or replace the property of a third party, including damage to the landlord’s premises and property.
  • Personal and Advertising Injury Liability: Allegations of defamation, libel, slander, or false advertising due to your services.

What does it not cover?

Tenant Legal Liability Insurance provides coverage for accidental injuries and property damage to third parties.

Here are some examples of what you would not be covered for under this coverage. 

  • Bodily injury to yourself or your employees;
  • Contractual liability; 
  • Intentional or wrongful acts; 
  • Errors and omissions (you’ll need Professional Liability Insurance);
  • Your personal property (look into Contents Coverage or Equipment Breakdown Coverage);
  • A product you manufacture or sell (Product Liability would generally offer coverage); or,
  • Third-party damage or bodily injury due to an alcohol-related incident (we recommend Liquor Liability Insurance if you serve alcohol).

How much does it cost?

You can anticipate spending $60 annually on a basic Tenant Legal Liability Insurance policy for a small business.

As every business is different, the following factors are typically taken into consideration when determining the cost of your premium:

  • Business Size and Location
  • Annual and Projected Gross Revenue
  • Number of Employees
  • Previous Insurance Claims

We’ve partnered with over fifty insurance providers to offer you different options that suit your business needs at the best price.

Frequently Asked Questions

Is Commercial Tenant Liability Insurance the same as Commercial General Liability Insurance?

Commercial General Liability Insurance is a general policy that applies to all sorts of businesses (not just companies in leased spaces). It provides coverage for bodily injuries or property damage to third parties for which the business can be held liable. Commercial Tenant Liability Insurance provides similar coverage, but it is specifically designed to cover a tenant’s legal liability towards the landlord in injury or property damage cases.

Does my Commercial Tenant Insurance policy cover my company’s property and equipment (computers, furniture, etc)?

Coverage for your company’s assets and equipment is not provided under a Commercial Tenant Insurance policy. The policy is designed to cover a tenant’s legal liability towards the landlord or other third party. To protect your property and equipment, make sure you add Commercial Property Insurance to your policy.

Am I legally required to obtain Tenant Liability Insurance?

Although you are not legally required to obtain Tenant Liability Insurance, it is common practice for landlords to require their tenants to have insurance coverage before leasing to them. In most cases, tenants are asked to get insured before signing a lease.

Other business insurance coverage options to consider:

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