What insurance does an Ontario business need before it can lease commercial space?

Most commercial leases in Ontario require the tenant to carry specific insurance as a condition of the lease itself, with the landlord typically setting minimum requirements in the lease document rather than leaving it to the tenant's discretion. The most common requirement is commercial general liability insurance at a minimum limit specified in the lease, often naming the landlord as an "additional insured" so the landlord's own interests are protected if a claim arises from something happening on the leased premises.

Depending on the space and the tenant's business, the lease may also require the tenant's own property or contents insurance for fixtures, equipment, and inventory, since the landlord's building insurance typically does not cover the tenant's own property, and sometimes business interruption coverage as well. Landlords generally require proof of insurance, a certificate of insurance, before handing over keys, and most leases require the tenant to maintain that coverage continuously, with a failure to do so potentially being a default under the lease. Reviewing the specific insurance clause before signing, and confirming with a broker that you can obtain compliant coverage, is worth doing before committing to the space.