An experienced business professional, Shannah Hall Franckum serves as principal at Cambridge Real Estate Company. In her prior role as vice president and director of leasing for the Porter Exchange Building Development Project, Shannah Hall Franckum successfully transformed a 1928 Sears Roebuck property into an office and retail building that is currently being leased to Japanese tenants.

1. COMMERCIAL
LEASE
INSURANCE
BASICS
Shannah Hall Franckum

2. Introduction
■ An experienced business professional, Shannah Hall Franckum
serves as principal at Cambridge Real Estate Company. In her prior
role as vice president and director of leasing for the Porter
Exchange Building Development Project, Shannah Hall Franckum
successfully transformed a 1928 Sears Roebuck property into an
office and retail building that is currently being leased to Japanese
tenants.
A commercial lease agreement between a landlord and tenant
stipulates a requirement to carry insurance to cover claims that will
protect the building and both parties involved. In most types of
coverage, such as gross lease and full service, the landlord pays for
all building-related expenses incurred, including the insurance
premium. However, landlords can transfer this responsibility to the
tenant in a triple net lease agreement.

3. Insurance
■ Before reaching an agreement about the insurance policy, both
parties must agree on and select the type of property damage
coverage they would like.The property damage may state “all
risk,” which covers anything that happens to the building, or
“named peril,” which only covers specific causes, such as a storm
or fire.
In addition to property damage, the lease also includes details
about the liability insurance
to protect the business and, by extension, the tenant from any
claims made by a third party for a personal injury that has occurred
inside the premises and has been directly caused by a business’s
products or operations.