What are Contracts:
Contracts are a tool used to enable two parties to produce a legally binding agreement enforceable by law. There are several types of contracts, but for our purposes, we will limit our comments to leases. Leases specify the responsibilities of the lessor and lessee and is the document courts will rely on should a claim arise for the location outlined in the lease. Therefore, leases are important and should be reviewed carefully prior to signing.
Items to consider including prior to signing a lease:
-Additional Insured language in your favor
-Waiver of subrogation endorsement in your favor
-Primary and non-contributory wording
-Mutual indemnification language
-Insurance policy limits are compliant with the requested limits of the lease
-Ensure requested policy structures are compliant with current policies
-Lines of coverage requested are reasonable and specific to your operations
-Any reference not detailed in the lease is included in the appendix
-Landlord maintains property and liability insurance
-Subcontractors maintain insurance with similar limits and certificates of insurance are requested
Items to consider excluding prior to signing a lease:
-Definite deductible limits requested by the landlord
-Broad language; lease requirements should be specific
-Wording providing landlord with notice of modification of the policies or any similar encroachments
-Language extending insurance responsibilities beyond the lease term
A lease can be reviewed and negotiated to ensure a more favorable outcome but as with any contract a lease should be reviewed by a lawyer. An insurance broker can comment on whether insurance policies meet the requested criteria and provide guidance specific to insurance policies but the last step in the process is having a lawyer thoroughly review the lease.
Lincy Kaczka - Account Manager
Lincy Kaczka joined equity risk partners in 2012 as an Analyst. Prior to Equity Risk Partners Mrs. Kaczka worked primarily on Personal Lines for the Private Client Group. At Equity Risk Partners she is now an Account Manager focused on both Property and Casualty and Executive Liability lines of business.
Mrs. Kaczka holds a Bachelor in Business Administration from the University of San Francisco.
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Michael Marcon - President, HUB International and Founder, Equity Risk Partners
Michael Marcon has more than 30 years of insurance experience, pioneering the delivery of insurance due diligence to private equity firms and specializing in alternative risk financing and transactional insurance products. Before launching Equity Risk Partners, Mr. Marcon was Executive Vice President of Aon Risk Services - Mergers and Acquisitions Group and he was instrumental in creating the Private Equity practice for Aon's predecessor company, Rollins Hudig Hall. He served as Regional Manager - Finance for Transamerica Corporation, as well as positions in Special Risk Financial and Capital Management for CIGNA Corporation.
Mr. Marcon holds an undergraduate degree in economics from Ursinus College (where he was the former chairman of the board of trustees) and an MBA in finance from Drexel University. Mr. Marcon tweets from @mcm7464 and can also be reached through his blog, Michael Marcon Tweets, where he writes about business, tradition, and life.
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