Lease insurance clauses you should require
The certificate is only as good as the lease behind it. This guide lays out the insurance language to require in a commercial lease — written for the portfolio and risk owner whose job is to make sure exposure is contractually transferred, not just collected.
The clauses that actually transfer risk
Not every clause carries equal weight. These are the ones that move risk from the owner to the tenant — and that a certificate proves are in place.
Additional insured
High riskWhat it does: Names the ownership entity (and sometimes the property manager) on the tenant's liability policy.
Why it matters: If a customer is injured inside the tenant's suite, the tenant's policy responds first — not yours. Without this endorsement, a claim can land on the owner's policy.
Waiver of subrogation
High riskWhat it does: The tenant's insurer waives its right to recover a paid claim from the landlord.
Why it matters: Prevents the tenant's carrier from suing you after paying a loss that originated in the tenant's space.
Notice of cancellation
High riskWhat it does: Requires the insurer to notify you (the certificate holder) before the policy is cancelled or materially changed.
Why it matters: Gives you warning of a lapse so you can chase a replacement certificate before coverage ends.
Named insured match
Medium riskWhat it does: The insured on the certificate must be the legal entity that signed the lease.
Why it matters: A trade name or affiliate on the certificate may mean the actual tenant isn't covered — invalidating the whole certificate.
Minimum limits
Medium riskWhat it does: States the dollar limits for general liability, auto, umbrella/excess and workers' compensation.
Why it matters: Sets the floor a certificate is measured against. Without written limits, there's nothing to verify.
Primary & non-contributory
Medium riskWhat it does: The tenant's policy pays before any of the landlord's coverage contributes.
Why it matters: Ensures the tenant's insurer is first in line, so your policy isn't drawn in for a loss you didn't cause.
Measuring certificates against the lease
Once the lease sets the requirements, every certificate is measured against them. The common gap isn't a missing limit — it's a checked box with no endorsement form referenced in the description of operations. In certflows, you upload your standard lease once and every COI is checked against those exact requirements, with the specific wording flagged when a clause is present but phrased differently.
Setting limits by property
A single set of limits rarely fits a whole portfolio. A ground-floor retail unit with high foot traffic warrants higher liability limits than a back-office suite. In certflows you can set company-wide lease standards and override them per building, so each property carries the limits its risk profile demands — and every certificate is checked against the right bar.
Frequently asked questions
What's the difference between additional insured and certificate holder?
The certificate holder is simply who the certificate is sent to. The additional insured is actually added to the policy and has rights under it. You need both, but additional insured is the one that transfers risk.
Should limits be per property or per tenant?
Limits are per tenant policy. If one tenant carries a $2M aggregate and another carries $1M, each applies to that tenant's operations. Track them individually so a single tenant's limit doesn't mask a shortfall elsewhere.
Can a lease require more than the ACORD 25 shows?
Yes — a lease can require endorsements (like additional insured) that don't appear as checked boxes but are referenced in the description of operations. Always read the description field, not just the checkboxes.