What landlords require of retail tenants: the insurance clauses in a storefront lease and how to prove you meet them

What your landlord requires when the tenant is a shop

QUICK ANSWER

A retail lease typically requires general liability of $1M per occurrence and $2M aggregate with the landlord and property manager as additional insureds, replacement-cost property on fixtures, improvements and inventory, business income to cover rent during a closure, workers' compensation, plate glass on the storefront, and a waiver of subrogation. Shopping-centre leases add the centre's owner and lender as additional insureds and sometimes an umbrella.

Reviewed by Michael LaBarbera, Licensed property & casualty agent, Provident Financial Group · Reviewed Oct 11, 2026 Updated Oct 14, 2026

Typical requirements and how to check them
Requirement	What they usually ask for	How to check what you have
Commercial general liability	$1M each occurrence / $2M general aggregate, with the landlord, its property manager and lender as additional insureds; products-completed operations included for shops that sell goods	Dec page limits and the additional insured endorsement form; a blanket form covering 'any person or organization required by written contract' satisfies most storefront leases.
Property on improvements, fixtures and inventory	Replacement cost on shelving, counters, signage, lighting, point-of-sale equipment and stock; some centres set a minimum as a share of the build-out	Business personal property and tenant improvements limits on the BOP, with replacement-cost valuation and a seasonal increase for inventory peaks.
Business income	Rent and continuing expenses through a covered closure, commonly actual loss sustained for twelve months	Business income line on the property policy; confirm the period of restoration and whether extra expense is included for a temporary location.
Plate glass	Storefront glass, doors and display windows at replacement cost	Modern BOP forms usually include glass; older leases still ask for it by name, so confirm there is no glass exclusion or sub-limit.
Workers' compensation and employers' liability	Statutory plus employers' liability of $500K or $1M	Information page of the workers' compensation policy, Part Two limits.
Waiver of subrogation and primary wording	Waiver in favour of the landlord on liability, property and workers' compensation; liability primary and non-contributory	Endorsements on each policy; the certificate reflects them only when the forms exist.
Umbrella in larger centres	$1M to $5M above the primary policies in regional malls, lifestyle centres and ground-floor space in office towers	A separate umbrella scheduling general liability, auto and employers' liability as underlying.

Requirement

What they usually ask for

How to check what you have

Commercial general liability

$1M each occurrence / $2M general aggregate, with the landlord, its property manager and lender as additional insureds; products-completed operations included for shops that sell goods

Dec page limits and the additional insured endorsement form; a blanket form covering 'any person or organization required by written contract' satisfies most storefront leases.

Property on improvements, fixtures and inventory

Replacement cost on shelving, counters, signage, lighting, point-of-sale equipment and stock; some centres set a minimum as a share of the build-out

Business personal property and tenant improvements limits on the BOP, with replacement-cost valuation and a seasonal increase for inventory peaks.

Business income

Rent and continuing expenses through a covered closure, commonly actual loss sustained for twelve months

Business income line on the property policy; confirm the period of restoration and whether extra expense is included for a temporary location.

Plate glass

Storefront glass, doors and display windows at replacement cost

Modern BOP forms usually include glass; older leases still ask for it by name, so confirm there is no glass exclusion or sub-limit.

Workers' compensation and employers' liability

Statutory plus employers' liability of $500K or $1M

Information page of the workers' compensation policy, Part Two limits.

Waiver of subrogation and primary wording

Waiver in favour of the landlord on liability, property and workers' compensation; liability primary and non-contributory

Endorsements on each policy; the certificate reflects them only when the forms exist.

Umbrella in larger centres

$1M to $5M above the primary policies in regional malls, lifestyle centres and ground-floor space in office towers

A separate umbrella scheduling general liability, auto and employers' liability as underlying.

What a storefront lease is protecting

The landlord's exposure in a retail lease is the building shell and the public: a customer who falls, a fire that spreads, a tenant who cannot pay rent after a loss. The insurance exhibit mirrors that: liability with the landlord added, property on what the tenant built, business income to keep rent flowing, and the glass that fronts the street. National landlords use one exhibit across their centres, so the limits reflect the portfolio rather than the size of your shop.

The lines a retail lease names

General liability is the centrepiece and carries the additional insured, primary and non-contributory and waiver endorsements. Property coverage names improvements, fixtures and inventory, and the better leases say replacement cost. Business income appears in every professionally drafted lease because a tenant without income defaults. Plate glass survives from older forms; most BOPs include it now, but the lease still asks. Workers' compensation is statutory in every licensed state and the lease simply wants to see it.

How to check your policies against the lease

Match the occurrence and aggregate limits on the general liability dec page to the exhibit. Confirm the additional insured form by its number and that it covers the manager and lender the lease names. Check the property schedule for improvements and business personal property at replacement cost, and whether a seasonal increase applies. Find the business income line and its period of restoration. Confirm there is no glass exclusion. Then verify the waiver of subrogation endorsement on each policy. Each gap is a request to the carrier or a quote for a new line.

Keep the certificate current

Retail leases ask for a new certificate at each renewal and notice of cancellation. A live certificate link stays current as policies renew and notifies the landlord when a line changes, so the yearly certificate exchange disappears while the official PDF stays attached.

Questions people actually ask

Does a retail lease require product liability?

Usually through the general liability policy's products-completed operations aggregate, which is included on standard forms. Shops that import or private-label goods should check that the carrier has not excluded them.

My inventory doubles before the holidays. Is my property limit enough?

Probably not without a seasonal increase or peak-season endorsement. Leases set the floor on improvements; your own exposure sets the inventory limit, and the landlord's lender sometimes asks for both.

The landlord wants to be named on my property policy too. Why?

As loss payee or additional insured on tenant improvements that revert to the landlord, so that a property claim is paid in a way that rebuilds the space. It is common in centres where the landlord funded part of the build-out.

How many additional insureds can one policy carry?

As many as the lease requires. A blanket additional insured endorsement covers any party the written contract names, so the owner, the manager and the lender are all included without a separate schedule.