Lessor Is Additional Insured Under Lessee’s Policy, New Jersey Panel Affirms - Mealey's

Key points

• New Jersey court affirmed that lessors can be additional insureds on lessee policies
• The ruling clarifies insurance coverage rights in landlord-tenant relationships
• This decision establishes important precedent for New Jersey property law
• Additional insured status provides important protections for property owners
• The ruling affects how lessors and lessees structure insurance agreements

FAQ

What does 'additional insured' mean in insurance?

An additional insured is a person or entity added to an existing insurance policy beyond the named policyholder, extending coverage protections to them for claims arising from the insured's activities.

Why would a lessor want to be an additional insured?

Lessors seek additional insured status to gain direct coverage protection under a lessee's liability policy, ensuring they have insurance backing if injured or sued due to the lessee's operations on the property.

How does this New Jersey ruling affect property leases?

The ruling clarifies that lessors have the right to require or negotiate for additional insured status under lessee insurance policies, strengthening their legal protections in standard lease agreements.