Insurance is a crucial part of any commercial lease project. Unexpected occurrences can cost a fortune but, with a little forward planning, commercial landlords can make sure that they are covered.
When a firm, such as Saracens Solicitors, is acting as a commercial lease solicitor in London, they advise on the various areas where clients can cover themselves through adequate insurance. Getting a reputable firm involved prior to leasing a property means that they can ensure that the client has taken out adequate insurance, that they are fully covered, and that the insurance terms and responsibilities are laid out in the lease.
When it comes to insurance, commercial leasing is much more complicated than residential leasing. The tenant is going to be running a business on the client’s premises and they may have employees, hazardous substances or circumstances where vehicles are moving around. All of these aspects are usually covered by the tenant’s various professional insurances, but it is still worth enshrining their obligations and the landlord liability within the lease terms. A commercial lease solicitor in London can help clients draw up a lease that offers clarity to both sides.
When insurance is vital: examples
There are standard issues that affect landlords suddenly with costly repercussions such as:
- Emergency damage to the property
The landlord usually remains responsible for the various utilities at the property as well as the structure of the building. Both of these areas, if they go wrong, can lead to costly repairs. Insurance is often required by mortgage companies before they will make a loan offer.
- Loss of rent due to damage
If something goes wrong, it may be that a property has to stand empty for many months while the damage is repaired. Even if the reconstruction is covered by insurance, the landlord remains responsible for the rent during this time period. A prudent landlord should ensure that loss of rent is covered within the insurance.
- Tenant injury or disputes
There are lots of reasons why landlords get into legal battles with their tenants. This might include injury or accident at the property or disagreement regarding the terms of the lease. A commercial lease solicitor in London helps both parties reach an equitable agreement if possible or makes their client’s case in court if not.