Like any charge under a retail lease, insurance charges can be the source of disputes between retail tenants and their landlords. Special concerns arise when the landlord chooses to self-insure against certain risks. It is not uncommon for a large landlord to self-insure at least a portion of its insurance obligations or for a landlord to create a “captive” insurance company to insure its properties. In many cases, these programs do not satisfy the landlord’s insurance obligations under the lease and the costs of these programs are not properly charged to the tenant. At the link is an article I wrote with my colleague, Jennifer Romano, on tenants’ rights regarding insurance and monitoring those rights.
