Can my landlord demand higher insurance coverage from my buyer as a condition of the assignment?

Generally yes, if your lease's consent provision gives the landlord room to set reasonable conditions on approving a new tenant, and insurance requirements are one of the more common and more easily justified conditions landlords impose. Landlords have a legitimate interest in making sure whoever occupies the premises carries adequate liability and property insurance, particularly if the buyer's intended use carries different risks than your own business did, or if the landlord's own insurance or mortgage requirements have changed since your lease was originally signed.

Whether a specific increase is reasonable depends on your lease's wording and whether the requirement is genuinely tied to protecting the landlord's property and liability exposure, rather than being used as an unrelated bargaining chip in the assignment negotiation. A modest increase reflecting actual risk is easier to justify than a demand that looks disconnected from anything about the buyer or the premises.

If the requested coverage seems excessive, ask what's driving the specific number before assuming it must be accepted as-is. A Treadstone business lawyer can assess whether the demand is proportionate and negotiate it if it isn't.