Insurance Implications to the Triple Net Lease

Contributing Author: Mark Rogina, CPCU

Commercial property owners who lease out their buildings to others have multiple choices when designing the lease.  Even after the lease is designed, further consideration must be taken to determine the execution of the designed lease.

In the event a commercial property owner has chosen to utilize a triple net lease with their tenant, the next choice to be made is how to handle taxes, maintenance, and insurance costs.  The landlord has two options: 1) purchase their own insurance and pass through the cost of the policy to the tenant or 2) to allow the tenant to purchase their insurance directly.

The advantages to allowing a tenant to purchase commercial insurance for the property directly include:

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