The following verbiage has been excerpted from the Insurance article of a typical CENTER WEST Lease (Individual Lease requirements may vary):
12.3 Tenant’s Insurance
During the Lease Term and any extension thereof, Tenant, at its sole expense, shall carry and maintain in full force and effect at all times, policies of insurance issued by a responsible carrier or carriers qualified to do business in the state of California, maintaining a rating of not less than A:XII, in Best’s Insurance Reports (or an equivalent rating in any successor index adopted by Best’s or any competent rating authority) affording the following insurance coverage:
12.3.1
Comprehensive or Commercial General Liability insurance with Broad Form General Liability endorsement, or its equivalent, including, contractual liability, personal injury, bodily injury and death, owner’s protective coverage, advertising injury and Broad Form property damage, and, if applicable, products and completed operations liability insurance, with limits subject to the review and approval of Landlord, but in no event less than $3,000,000 for each occurrence and $5,000,000 annual aggregate. Said insurance shall be on an occurrence basis, not on a claims made basis. The insurance shall apply to claims alleging personal injury, bodily injury, advertising injury, or property damage arising out of, caused by, or contributed to, by acts of terrorism.
12.3.2
Physical loss or damage due to fire and other casualties covered within the classification of fire and extended coverage, vandalism coverage, and malicious mischief, sprinkler leakage, water damage and extended coverage and terrorism applicable to (i) Tenant Improvements, as such term is defined in Article 5.2.2, and (ii) all other improvements, Alterations, and additions to the Premises, and (iii) personal property of every description and kind which is owned by Tenant and located in the Building or for which Tenant is legally responsible or which was installed by or on behalf of Tenant including, without limitation, furniture, fittings, installations, fixtures, any satellite antenna or microwave dish, and any other personal property. The properties described in this Article 12.3.2 (i), (ii), and (iii) are referred to collectively as “Tenant Property.” Such insurance shall be written on an “all risks” of physical loss or damage basis, for the replacement cost value new without deduction for depreciation of the covered items and in amounts that meet any co-insurance clauses of the policies of insurance and shall include sprinkler leakage coverage, earthquake sprinkler leakage coverage, and a pollution exclusion endorsement for damage or injury caused by heat, smoke, or fumes from a hostile fire. Notwithstanding any other provisions of this Lease, upon the occurrence of any damage to the Premises, Tenant shall name Landlord (or any party designated by Landlord) as the loss payee, and shall assign to Landlord (or to any party designated by Landlord) all insurance proceeds payable to Tenant, under Tenant’s insurance required by this Article 12.3.2 sub-parts (i) and (ii). If the proceeds paid or assigned to Landlord under this Article 12.3.2 are not sufficient to fully restore the Premises to their condition immediately prior to the casualty causing the damage, exclusive of any wear and tear or functional obsolescence, Tenant shall, prior to the commencement of restoration, pay to Landlord the difference between the proceeds assigned and actually paid under this Article and Landlord’s estimated cost of restoration.
12.3.3
Business Interruption, Loss of Income and Extra Expense Insurance in such amounts as prudent tenants in Comparable Buildings would carry to reimburse Tenant for direct or indirect Business Interruption, Loss of Earnings, and Extra Expenses attributable to all perils commonly insured against by such prudent tenants including earthquakes and terrorism; or attributable to prevention of access to the Premises or the Building, or any portion thereof, as a result of such perils.
12.3.4
Worker’s Compensation as required by law;
12.3.5
Employer’s Liability insurance in an amount not less than $1,000,000;
12.3.6
Any other form or forms of insurance (or increases to the coverage amounts), as Landlord, or Landlord’s mortgagees or ground or primary lessors, acting in a manner consistent with the practices of landlords or mortgagees of first class office buildings in the same geographical area, may reasonably require from time to time.
