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Ely
Ely, Counselor at Law
Category: Real Estate Law
Satisfied Customers: 100040
Experience:  Qualified attorney in private practice including business, family, criminal, and real estate issues.
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Can my landlord require me to carry 5 times the average

Customer Question

Can my landlord require me to carry 5 times the average amount of liquor liability insurance?
Submitted: 9 months ago.
Category: Real Estate Law
Expert:  Ely replied 9 months ago.

Hello and welcome to JustAnswer. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

Have you already rented, OR, this is still in negotiation?

This is not an answer, but an information request. I need this information to answer your question. Please reply, so I can answer your question. Thank you in advance.

Customer: replied 9 months ago.
I have already rented. I have been in the space for 5 years and the landlord has accepted my insurance of $1,000,000 of liquor liability with another $2,000,000 in umbrella insurance that can be applied to liquor liability for the entire 5 years. Now they want me to have $5,000,000 in liquor liability alone. It says $5,000,000 in the lease but they have never required it in the past because the underwriters say it is an excessive amount for my business.
Expert:  Ely replied 9 months ago.

Thank you. I am afraid I have some bad news.

1) Just because it is not standard or may be excessive does not mean that the clause would be voided. It is in the contract and signed by both parties. You agreed to it.

2) Just because they have not required it in the past does not mean that they cannot now. Unless you have proof that they decided never to demand this clause be enforced in writing, then they can decide to enforce the clause now.

So yes, if it is in the contract, they can enforce it. Even if they have not in the past, and even if it is a bit excessive for the business.

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I hope this helps and clarifies. Please use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how experts get credit for our time. Rating my answer the bottom two faces/stars (or failing to submit the rating) does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith with a positive rating.

Expert:  Ely replied 9 months ago.
Hello again. This is a courtesy check in to see if you needed anything else in regards ***** ***** question because you never responded or replied positively. I am simply touching base. Let me know. Thanks!

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