Need Legal Help? Call Now!

If you have not actually read your lease, you are in the majority of commercial tenants that have skipped this part of their business. In fact, if you did actually read the thick document you likely skimmed over the parts that really matter if things go bad, i.e. indemnity clauses, insurance, exclusivity clauses, and personal guarantees. It is common to find tenants only after the fact start going through the provisions of the agreement to see whether the landlord is responsible for fixing X, whether the tenant can sublease, or whether the tenant can prevent a competitor moving into the same complex.2013-03-04 12.32.15

These lease agreements are some of the worst legal documents as they are puzzle pieced together over years of monkey-see and monkey-do. Rarely does the landlord or its attorney take into consideration proper allocation of risks with insurance and indemnification clauses; often it is just easier to assign liability to the tenant even where the tenant has limited control to mitigate the harm the tenant is charged with liability.

Having a GREAT experienced insurance agent is key in this respect as it will aid in deciding proper coverage for both tenant and landlord even where the tenant is paying the premium. Also is important is having a GREAT broker to understand the market and to push the limits in negotiation. Having a GREAT attorney is that nail in the coffin that ensures limited liability. The attorney will be responsible for ensuring that these other advisers do their job well by asking questions as to how risks have been shifted through indemnification clauses or whether there is a waiver of subrogation included in the so-called "boilerplate" rental agreements.

Personal guarantees can have grand consequences in worst case scenarios  Often brokers who are unable to negotiate out of a PG will not dive into the PG itself in ensuring that the personal liability is limited to what is necessary. If you have to sign a personal guarantee, there are some small changes that you can make that can at lease minimize its effect.

Protect your business with an on demand legal team

Learn More About General Counsel Select
Legally Sound | Smart Business
A podcast covering business in the news with a legal twist by Pasha Law PC
Legally Sound Smart Business Cover Art

Legally Sound | Smart Business covers the top business stories with a legal twist. Hosted by attorneys Nasir N. Pasha and Matt Staub of Pasha Law, Legally Sound | Smart Business is a podcast geared towards small business owners.

Download the Podcast

Google Podcast Subscribe Apple Podcast Subscribe

Ready to discuss representation for your business?

Pasha Law PC is not the typical law firm. No hourly rates and no surprise bills are its tenants. Our firm's approach is an ideal solution for certain select businesses.

Give us a call at 1-800-991-6504 to schedule an assessment.


Fill out the form assessment below and we'll contact you promptly to find the best time for a consultation with a Pasha Law PC attorney best suited for your business.

Please provide your full name.
Please provide the name of your business.
Please provide a valid email address.
Your phone number is not long enough.
Please provide a valid phone number.
Please provide a zip code of your business.
Please provide a short description of your business.
Please provide the approximate number of employees of your business.
Please provide the approximate number of years you have been in business.