Many times, companies and/or manufacturers entering into a long-term lease of premises, sign a lease that contains some very interesting provisions with respect to the providing of liability insurance, workers’ compensation insurance, etc.
This is also true when it leases equipment/autos. The lease of equipment usually contain provisions with respect to the obligation of the company or manufacturer to provide specific types of insurance with specific limits required, and in many instances a requirement that the landlord/lessee be named as an additional named insured and that certificates of insurance be provided to them.
It is imperative that when any type of lease of premises or leasing of equipment is undertaken by the company or manufacturer that they provide to their insurance agent the lease in question with directions to the agent that “make sure you provide me the necessary insurance coverage etc. called for in the lease”.
In not seeing to it that the specific insurance called for in the lease is obtained, the company/manufacturer becomes liable and may have no coverage under their own CGL policy for the damages to the lease premises or to the leased equipment.