It’s important for sports organizations that lease or rent buildings from a landlord to be covered by Fire Damage Legal Liability in their General Liability coverage. This coverage is also known as Damage to Premises, and applies in the event that the negligence on the part of the sports organization results in damage to rented premises (by fire or otherwise) and is sued for damages.
Typical limits for Fire Damage Legal Liability are either $100,000 or $300,000 depending on the carrier.
In the event that the replacement cost value of the lease building exceeds the Fire Damage Legal Liability limit, you should either increase your limit or attempt to negotiate a joint waiver of subrogation provisions to your lease agreement.
Under a joint waiver of subrogation provision, both the landlord and sports organization tenant agree that each will rely on their own property insurance to cover their respective property losses and that each will waive the subrogation rights of their property insurance carrier to recoup its claim payment loss via lawsuit against the negligent party who caused the loss.
