What COI Should a Landlord Require From a New Tenant?

As a commercial property owner, bringing in a new tenant is a big step. You want to protect your investment. A key part of this protection is making sure your tenant has the right insurance. This often means asking for a Certificate of Insurance (COI).

A COI proves a tenant has insurance. It shows coverage types, limits, and policy dates. But just getting a COI is not enough. You need to know what to ask for and what to check. This guide helps you set clear landlord COI requirements for your commercial tenants.

Why Commercial Tenant Proof of Insurance Matters

When a business operates on your property, risks increase. Accidents can happen. Property damage might occur. Someone could get hurt. If your tenant lacks proper insurance, you could face unexpected costs. You might even be drawn into a lawsuit.

A COI acts as commercial tenant proof of insurance. It gives you a snapshot of their coverage. This helps protect you from financial loss. It also ensures your tenant can meet their lease obligations. A licensed agent can confirm how carrier rules apply to your business.

What Insurance Does a Commercial Tenant Need?

Your lease agreement should clearly state your commercial property owner insurance requirements. These requirements protect both you and your tenant. Here are common types of insurance you should expect your commercial tenant to carry:

General Liability Insurance: This is crucial. It covers claims of bodily injury or property damage to third parties. For example, if a customer slips and falls in your tenant's store. Or if the tenant accidentally damages a neighboring unit. Most leases require this.
Commercial Property Insurance: This covers the tenant's business property. This includes their equipment, inventory, and furniture. It protects against events like fire or theft. Your tenant's policy does not cover your building. Your own commercial property insurance covers your building. You can learn more about your own needs with our Commercial Property Insurance Checklist.
Workers' compensation: Requirements vary by state, ownership, workforce, and industry. Use the U.S. Department of Labor state directory to find the correct regulator instead of using one national employee-count rule.
Business Interruption Insurance: This helps a tenant recover lost income if their business must close due to a covered event. It can also cover extra expenses during the recovery.
Professional Liability (E&O): If your tenant offers professional services (like a consultant or accountant), this covers claims of negligence or errors.

The specific types and limits depend on the tenant's business. A restaurant needs different coverage than an office. Always tailor your requirements to the tenant's operations.

Setting Your Commercial Property Owner Insurance Requirements

When drafting your lease, be specific about insurance. Do not just say "adequate insurance." Define what that means.

Minimum Coverage Limits

Specify the minimum dollar amounts for each type of coverage. For General Liability, a common request is $1 million per occurrence and $2 million aggregate. These limits protect against large claims. Consider higher limits for high-risk businesses.

Additional Insured Endorsement

If the lease requires additional-insured status, ask for the endorsement that grants it. That form may let the tenant's liability policy respond to some claims involving the landlord, subject to its wording and the facts.

An additional insured landlord endorsement extends some of the tenant's liability coverage to you. It protects you if someone sues you for an incident that happened on the tenant's premises. For example, if a customer slips in the tenant's store and sues both the tenant and you, the landlord. Without this endorsement, your own insurance might have to pay first.

Make sure the endorsement is "primary and non-contributory." This means the tenant's policy pays before yours. It also means their policy will not seek money from your policy.

How to Request COI from Commercial Tenant

Requesting a certificate of insurance for commercial lease should be part of your tenant onboarding. Do it early in the lease negotiation. This gives the tenant time to get the right coverage.

Here's how to make the request clear:

Provide a List: Give your tenant a written list of all required coverages and limits.
Specify "Additional Insured": Clearly state that you need to be named as an additional insured. Provide your exact legal name and address.
Request Endorsement Proof: Ask for a copy of the actual additional insured landlord endorsement form. The COI only states that you are an additional insured. The endorsement form is the actual policy language.
Set a Deadline: Give a clear date for when the COI and endorsements are due. This should be before the lease starts.

Annotated COI Request Checklist

Use this checklist when you how to request COI from commercial tenant. It helps ensure you get all the right details.

Item to Request	Why it Matters	What to Check
Certificate Holder	Shows who the COI is for.	Your legal name and address must be correct.
Insured's Name	Identifies the tenant's business.	Must match your tenant's legal business name.
Policy Dates	Confirms active coverage.	Ensure dates cover the entire lease term.
Coverage Types	Verifies required policies.	General Liability, Property, Workers' Comp (if applicable).
Coverage Limits	Confirms adequate protection.	Match your lease's minimum requirements (e.g., $1M/$2M GL).
Additional Insured	Protects you from tenant's liability.	Your name listed in the "Description of Operations" box.
Endorsement Copy	Legal proof of additional insured status.	Request the actual endorsement form (e.g., ISO form CG 20 11 or CG 20 10).
Cancellation Notice	Ensures you are notified if policy ends.	Should state you get notice before cancellation.

How to Verify Tenant Insurance Certificate

Once you receive the COI, do not just file it away. Take time to how to verify tenant insurance certificate. This step is crucial for your protection.

Check All Details: Compare the COI against your checklist above.
- Are the tenant's name and your name correct?
- Do the policy numbers and dates match?
- Are the coverage types and limits correct?
Confirm Additional Insured Status: Look closely at the "Description of Operations" section. Your name should be listed here, often with wording like "The Landlord, [Your Name], is included as an Additional Insured."
Review the Endorsement: If you requested the actual endorsement form, read it. Ensure it provides the "primary and non-contributory" language. This confirms your coverage is not secondary.
Contact the Insurer (If Needed): If anything looks unclear or incorrect, contact the insurance agent or carrier directly. The COI usually lists the agent's contact information. Do not rely solely on the tenant to clarify.
Save Records: Keep a copy of the COI and all endorsements with your lease documents.

Ongoing Management and Renewals

Insurance policies expire. You need a system to track renewals. Most COIs show an expiration date. Mark this date on your calendar. Request an updated COI from your tenant well before their current policy expires. This ensures continuous coverage.

Make renewal tracking part of your standard operating procedure. This helps maintain your protection throughout the lease term.

Your Quote-Ready Next Step

Setting clear landlord COI requirements is vital for any commercial property owner. It protects your investment and minimizes your risks. By understanding what to ask for and how to verify it, you can ensure your tenants meet their insurance obligations.

Turn the lease clause into a review sheet. Record the tenant's legal name, premises, operations, required policies, limits, endorsements, certificate holder, renewal date, and the person who checked each item. Use Kinro's landlord COI wording checklist for the handoff to the agent.

Where to compare next

The New York Department of Financial Services explains why a certificate holder is not automatically an additional insured. Review the commercial property checklist separately for the landlord's own building and income coverage.