What insurance does an Ontario commercial tenant typically have to carry under a lease?

Most Ontario commercial leases require the tenant to carry commercial general liability insurance, covering claims for bodily injury or property damage arising from the tenant's use of the space, typically naming the landlord as an additional insured so the landlord is also protected under the tenant's policy. Beyond liability coverage, leases commonly require the tenant to insure its own contents, inventory, and any leasehold improvements or betterments it paid for, since the landlord's own building insurance generally won't cover a tenant's property or business losses.

Some leases also require business interruption insurance, protecting the tenant's own revenue if an insured event, like a fire, forces a temporary closure, though this tends to be less universally required than liability and contents coverage. The landlord typically carries separate insurance on the building structure itself and passes the cost through to tenants as part of operating costs or common area maintenance charges, rather than the tenant insuring the building directly.

Because insurance requirements and minimum coverage amounts vary by lease and by landlord, and gaps in required coverage can leave a tenant personally exposed after a loss, review the lease's insurance clause with your insurance broker before signing, not after an incident happens.