The Role of General Liability Insurance in Commercial Leases

General liability insurance may be required when entering a commercial lease in Texas.

Sanchez Insurance helps businesses navigate lease agreements and insurance obligations. Our team is here to help you get appropriate general liability insurance.

Why Do Commercial Leases Require General Liability Insurance?

Landlords and property managers in Texas commonly include general liability insurance as a condition in commercial lease agreements. This coverage may help cover financial losses in case of accidental injuries or property damage on the leased premises. By requiring tenants to carry this insurance, landlords reduce their risk and help tenants financially prepare for potential claims.

What Does General Liability Insurance Cover?

General liability insurance may address several business risks:

• Bodily injury coverage may pay for third-party medical expenses and your legal fees if your business is at fault for an accidental injury on your leased property.
• Property damage coverage may provide financial support if your business causes damage to someone else’s property.
• Personal and advertising injury coverage may handle legal defense expenses and settlement costs in case of claims of libel, slander or copyright infringement related to your business operations.

How Does This Affect Texas Business Owners and Tenants?

In Texas, commercial leases often specify minimum coverage limits and may require tenants to list the landlord as an additional insured on the policy. Failing to meet these requirements can lead to lease violations or eviction. Business owners and tenants must review their lease agreements carefully and secure insurance that meets all specified terms.

Learn More

If you’re a business owner or commercial tenant in Dallas, TX, Sanchez Insurance can help you secure general liability insurance. Contact us today to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.