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Who Is Responsible for Insurance When Leasing a Shop?
When renting retail premises, insurance responsibilities are usually split between the landlord and the tenant. Lease agreements often specify minimum insurance requirements, making it essential for retailers to understand what they must arrange themselves.
Insurance Typically Required by Retail Tenants
- Public Liability Insurance – required under most leases to protect visitors
- Employers’ Liability Insurance – legally required if staff are employed
- Contents & Stock Insurance – fixtures, fittings, goods and equipment
- Business Interruption Insurance – loss of income following insured damage
- Glass & Shopfront Cover – windows, signage and frontage
- Cyber & Data Insurance – POS systems and customer data
Insurance Typically Arranged by the Landlord
- Buildings insurance (structure, roof, walls)
- Property owners’ liability insurance
- Terrorism insurance (where applicable)
- Common parts cover (malls, arcades, parades)
- Loss of rent cover (often recoverable via service charge)
Common Lease Insurance Clauses Retailers Should Check
- Minimum public liability limits (often £2m–£10m)
- Named interest or noting of landlord on policy
- Glass and shopfront responsibilities
- Reinstatement and repair obligations
- Service charge insurance recoveries
Why Use Insure24 When Leasing Retail Premises?
- Retail insurance specialists who review lease requirements
- Policies aligned to landlord & managing agent demands
- Correct limits to satisfy lease clauses
- Support with certificates and policy wording
FREQUENTLY ASKED QUESTIONS
+- Do retail tenants need their own insurance?
Yes. Retail tenants are usually responsible for public liability, contents, stock and business interruption insurance.
+- Is buildings insurance included in the rent?
Buildings insurance is usually arranged by the landlord and recovered through service charges, but tenants should check the lease.
+- What public liability limit do landlords require?
Most leases require between £2 million and £10 million public liability cover.
+- Does the landlord need to be noted on the policy?
Many leases require the landlord or managing agent to be noted as an interested party on the tenant’s policy.
+- Can Insure24 review lease insurance clauses?
Yes. Insure24 regularly reviews lease insurance clauses to ensure cover meets landlord and managing agent requirements.