An agent’s insured receives a triple net lease from their landlord, which requires the insured to insure the building because they are the sole tenant. The lease makes the following request:

“Tenant shall furnish Landlord with a Certificate of Insurance for such Property Insurance, Business Interruption Insurance and Liability Insurance, naming Landlord as an additional named insured with regard to the Property Insurance to the extent of Landlord’s insurable interest, and naming Landlord as an additional insured with regard to the Business Interruption and Liability Insurance.”

Q: "It’s a standard request to add the landlord as an additional insured on the general liability, but I have never heard of adding an additional insured for the property or business interruption. Is there a property endorsement that would satisfy this request?"

A: “In 2008, at the request of the Big “I” Technical Affairs Committee and the Mid-America Insurance Conference, ISO introduced two endorsements to fulfill a request like this:

• CP 12 19 - Additional Insured - Building Owner Under a triple net lease, this new endorsement allows a tenant to add the building owner as an additional insured. We aggressively pursued this much-needed form beginning in 2004.
• CP 15 03 - Business Income - Landlord as Additional Insured (Rental Value) This new endorsement allows a tenant to purchase loss of rental value income insurance on behalf of the landlord. Like the new CP 12 19, this was a much-needed coverage that lease agreements increasingly required. We sought this form actively beginning in 2000.

Check out 2008 ISO Commercial Property Changes in the Big “I” Virtual University (VU) for additional information.

And although you didn't ask about it, other issues arise in this situation regarding ‘additional named insureds’ and ‘triple net leases.’ Search the VU for both of those phrases for articles on these issues.”

Bill Wilson is director of the Big “I” Virtual University.

This question was originally submitted by an agent through the VU’s Ask an Expert Service. Answers to other coverage questions are available on the VU website. If you need help accessing the website, email logon@iiaba.net to request login information.