You will see below are sample “additional named insured” clauses, drafted separately for commercial and residential tenancies. The wording reflects how Courts and insurers actually interpret “additional insured coverage” and why the approach must differ depending on the tenancy type.
Commercial Lease – Additional Named Insured
“Additional Insured
The Tenant shall maintain Commercial General Liability insurance with limits of not less than $2,000,000 per occurrence. The policy shall name the Landlord as an additional insured, but only with respect to liability arising out of the Tenant’s use, occupancy, or operations in the Premises.
Such insurance shall be primary and non-contributory with any insurance carried by the Landlord. The Tenant shall provide evidence of coverage, including a copy of the applicable additional insured endorsement, upon request.”
Residential Lease – Additional Named Insured (Ontario)
“Additional Insured (If Available)
The Tenant shall maintain tenant’s insurance providing personal liability coverage. Where permitted by the insurer, such policy may name the Landlord as an additional insured solely with respect to liability arising from the Tenant’s acts or omissions within the rental unit.
Nothing in this provision shall require the Tenant to insure the building or relieve the Landlord of any obligation imposed by the Residential Tenancies Act, 2006.”
Brian Madigan LL.B., Broker
www.OntarioRealEstateSource.com