This office lease provision states that the parties desire to allocate certain risks of personal injury, bodily injury or property damage, and risks of loss of real or personal property by reason of fire, explosion or other casualty, and to provide for the responsibility for insuring those risks permitted by law.
Michigan Provision Allocation Risks and Setting Forth Insurance Obligations of Both the Landlord and the Tenant ensure that both parties involved in a lease agreement understand their respective responsibilities and protect themselves against potential risks. These provisions help mitigate disputes and financial losses by clearly outlining the insurance obligations and liability allocation between the landlord and the tenant in different scenarios. There are several types of Michigan Provision Allocation Risks and Setting Forth Insurance Obligations, including: 1. Property Insurance Obligations: This provision outlines the requirement for both the landlord and the tenant to maintain adequate insurance coverage for the leased property. It specifies the type of insurance (e.g., property insurance, liability insurance) and sets the minimum coverage limits for each party. 2. Liability Insurance: This provision addresses the liability risks associated with injuries or damages that may occur on the leased property. It requires the tenant to carry liability insurance to cover any accidents or injuries caused by their actions or negligence. The landlord may also be required to have liability insurance to protect them from potential lawsuits related to property maintenance and conditions. 3. Indemnity Clause: The indemnity clause specifies that the tenant agrees to indemnify and hold the landlord harmless from any claims, damages, or liabilities arising from the tenant's use or occupation of the property. This provision protects the landlord from liability arising from the tenant's activities and ensures the tenant takes full responsibility for their actions. 4. Force Mature Clause: A force majeure clause is included to address unforeseen events or circumstances that may affect the lease agreement, such as natural disasters, government actions, or other events beyond either party's control. This provision may specify how insurance claims for damages caused by force majeure events are handled and who bears the financial responsibility. 5. Subrogation Waiver: This provision prevents insurance companies from seeking reimbursement from the tenant for any claims caused by the tenant's actions. In other words, it prohibits the landlord's insurance provider from going after the tenant's insurance coverage to recover the costs associated with the claim. To ensure a comprehensive understanding and proper implementation of these provisions, it is advisable for both parties to consult with legal professionals experienced in Michigan real estate law. Additionally, it is crucial to review and update these provisions regularly to adapt to changing circumstances and legal requirements.
