A Guide to Loss Control Techniques for Commercial Property Owners

As a commercial property owner, you can be sued for the actions or inactions of others.

By taking a few simple preventative steps, you can greatly reduce the chances of being involved in a lawsuit.

An an owner, it is important that you be aware of the type of operations being conducted by your tenants on your property so they do not put your premises at greater risk than you anticipated at the time of lease.

For example, a garage operator who leases your premises to perform mechanical repairs may also be conducting paint spraying operations with the potential of generating unanticipated fire or residual pollution hazards.

• Require that tenants supply you with proof of insurance (commonly called a "certificate of insurance"). This certificate should show that the tenant is carrying insurance with coverage limits sufficient to satisfy your concerns for adequate self protection.
• Require that the tenants name you as "Additional Insured Lessor" under their public liability policy. Ask for a copy of this document (policy endorsement) and make it part of your tenant's file.
• Be sure to keep current proofs (certificates) of insurance in the tenant's file. (Obtain certificate copies each year.)
• Your lease or rental contract should contain a "hold harmless" clause protecting you from the acts or omissions of your tenant. (Consult your attorney to be sure of the proper wording for this clause.)
• As with any legal document, your contracts and/or agreements should be reviewed by your attorney.

• If you use the services of tradesmen such as plumbers, carpenters, painters, cleaning services, snow plow operators, etc. to help maintain your premises, you should require the same proofs of insurance that you receive from your tenants. You should not allow others to perform work of any sort (regardless of how minor the work may seem) on your property without proof that they have sufficient insurance coverage to protect your interests.
• If you have contracts with any tradesmen, you should require that they name you as an "Additional Insured" under their public liability insurance policy. They should also provide you with a copy of that document. You attorney, or independent insurance agent can provide guidance in this area.