Commercial Lease Insurance Requirements: What to Check Before You Sign
The landlord says you need insurance before receiving the keys. You already have a business policy, so it is tempting to ask for a certificate and move on.
First, send the complete insurance clause for review. A certificate cannot create protection the policy does not provide. Washington’s certificate rules make that distinction explicit for risks in the state. A lease can request coverage, but the insurance contract still determines what is insured. [1]
Your broker can review the insurance documents; a qualified lawyer should advise on the lease and the obligations you are accepting.
Start before the signature, not before moving day
Gather the proposed lease, all insurance exhibits and any separate requirements from the property manager. Keep the documents together so the review is not based on one sentence forwarded without context.
Identify the tenant’s legal name, the landlord and other entities the lease says must be protected. Confirm the premises and the planned operations. A policy review is more useful when it reflects what will actually happen in the space.
Explain proposed alterations, storage, events, deliveries or other relevant activities. Do not assume that describing the business simply as an “office” or “shop” covers every planned use.
Separate the types of requirements
Make a worksheet with four headings: coverage, limits, endorsements and evidence. Copy each requirement into the appropriate category, retaining the original wording for the advisors.
For coverage, identify the requested policies. For limits, record whether the clause specifies individual claims, occurrences, aggregates or another basis. For endorsements, note the requested changes or conditions. For evidence, identify what documents must be supplied and when.
This avoids treating a higher limit as the solution to a missing endorsement—or assuming a certificate deadline is the same as the coverage effective date.
Check additional-insured wording rather than just the holder name
A certificate holder and an additional insured are not the same thing. Ask the broker what provision would address the landlord’s requested status, which entities are included and what conditions apply. A certificate itself does not extend coverage under Washington’s rule. [1]
Also ask about any requested primary/noncontributory or waiver-of-subrogation wording. Do not approve a contract phrase merely because it sounds familiar. Request confirmation that the actual policy can address it, and have counsel explain the contractual implications.
The existing certificate guide provides the broader explanation without replacing this lease-specific review.
Make property responsibilities visible
Discuss the building, tenant improvements, fixtures, business equipment, stock and property belonging to other people separately. A commercial property arrangement can address different business assets, but the ownership and insured interest need to be identified. [2]
Ask who is responsible for the improvements you are paying for, what happens if those improvements are damaged, and whether the lease imposes an obligation beyond the policy being proposed. Keep quotations, fit-out descriptions and the lease wording with the review file.
Do not assume the landlord’s building insurance is intended to replace the tenant’s damaged contents or lost income. Ask for the actual allocation of responsibilities.
Notice wording deserves its own check
A landlord may request advance notice of cancellation or other changes. Washington’s rule ties a certificate holder’s notice rights to the relevant policy or endorsement and its terms; printing a request on a certificate does not create a new right. [1]
Ask what notice provision is available and whether it matches the lease. If it does not, have the broker and legal advisor help identify the unresolved difference before you accept an obligation that has not been addressed.
Compare the requirement with evidence of completion
Use a closing checklist that distinguishes a requested action from a completed one:
| Requirement | Evidence to obtain |
|---|---|
| Correct tenant and operations | Policy details reviewed against the lease |
| Required coverages and limits | Relevant policy or binder information |
| Additional-insured or other provisions | Applicable wording or endorsement confirmation |
| Required effective date | Confirmation coverage has been arranged for that date |
| Certificate delivery | Accurate document sent to the stated recipient |
| Open differences | Written record for broker/legal follow-up |
An application, quote or email request should not be treated as proof that coverage is in force. Resolve outstanding items before relying on them.
Revisit the lease when the business changes
Changes in operations, space, subletting or ownership are reasons to review both the agreement and insurance. Keep the latest documents together instead of recycling a certificate from a previous location.
For NRG’s coverage information, see general liability insurance. Start an inquiry describing the proposed lease and request a secure method to share the full insurance requirement. The goal is a documented comparison—not simply a certificate that looks acceptable at first glance.
Sources
[1] Washington Administrative Code 284-30-355 — certificates of insurance. Accessed October 13, 2026.
[2] The Hartford — hardware store insurance and property exposures. Accessed October 13, 2026.
Coverage examples are illustrative. Policy wording, exclusions, limits, underwriting and applicable law determine coverage. This article is general information, not a coverage determination.