1 INSIGHT

Before moving into an industrial building, tenants must meet the lease’s insurance requirements and provide a valid Certificate of Insurance (COI).

Landlords require specific coverage types and limits, and proof must be provided through a COI before keys are released. Missing endorsements or incorrect language can hold up move-in and even put the tenant in default.

Insurance compliance is a critical step in securing possession of your industrial space.

2 ACTION STEPS FOR TENANTS

1. Review Insurance Requirements Early
   Confirm required coverage, including:
   
   – Commercial General Liability (CGL)
   – Property Insurance
   – Workers’ Compensation
   – Auto Liability (if applicable)
   – Umbrella / Excess Liability
   
   Check coverage limits and required endorsements (e.g., additional insured, waiver of subrogation).
   
   
2. Verify Insurance Provisions With Your Broker & Insurance Agent
   Ensure the following:
   
   – The COI lists the landlord and/or property manager correctly (ask the listing agent or landlord which name and address should appear on the COI)
   – The COI lncludes required endorsements
   – Tenant verifies policy limits per lease liability insurance requirements (e.g., $2,000,000 per occurrence, $4,000,000 aggregate)
   – The COI is delivered and approved by Landlord before taking possession of the space
   
   Small wording errors can delay occupancy.

3 KEY TAKEAWAYS

• Insurance compliance is required under most industrial lease agreements.
• A COI must reflect the lease terms precisely.
• Working with your insurance agent in advance reduces the risk of occupancy delays.