6
PLAYBOOK TEMPLATES
Tenant Improvement Allowance Agreement
A Tenant Improvement Allowance Agreement defines funding and construction terms for tenant space modifications. This playbook provides negotiation insights on payment schedules, approval rights, and completion standards.
Insurance Obligations
Negotiation strategy
Ensure that the tenant maintains adequate insurance coverage to protect the property from potential damages. Require timely delivery of insurance certificates to verify compliance.
Negotiate for reasonable insurance requirements that align with industry standards. Ensure that the coverage limits are not excessively burdensome.
Essential elements
1
Coverage Types
Specify required insurance types.
2
Coverage Limits
Define minimum insurance limits.
3
Certificate Delivery
Outline certificate submission timeline.
Action framework
ACCEPT
Propose edits if coverage types or limits are unclear or insufficient.
EDIT
Reject if insurance requirements are unreasonably high or irrelevant.
ADD
Add if insurance obligations are missing or incomplete.
PRO TIP
Always verify that insurance certificates are current and meet the specified requirements.
Real-world examples
FAVORABLE
Comprehensive Coverage Clause
"Both parties shall maintain comprehensive insurance coverage, including general liability and property insurance, with limits of not less than $1,000,000 per occurrence. Certificates of insurance shall be delivered within 30 days of contract execution."
NEUTRAL
Standard Insurance Clause
"Insurance coverage shall be maintained as mutually agreed upon, with certificates provided upon request."
UNFAVORABLE
Inadequate Coverage Clause
"Insurance requirements are optional and may be waived at the discretion of either party."
Alternative scenarios & positions
High-Risk Projects
For projects with higher risk profiles, consider increasing coverage limits and adding specific types of insurance, such as environmental liability.
Short-Term Leases
In short-term lease agreements, negotiate for proportional insurance requirements that reflect the reduced duration and risk exposure.
Shared Facilities
When facilities are shared among multiple tenants, ensure that insurance obligations are clearly defined to cover common areas and shared liabilities.
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WEEK 3
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WEEK 4
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