Commercial General Liability Insurance
Requirements
You must ensure the general liability insurance coverage is at least
- $1 million per occurrence/$2 million general aggregate limit, plus
- excess/umbrella insurance as follows:
|
If the number of stories in the building is... |
The minimum excess/umbrella insurance coverage is... |
|---|---|
|
1 - 4 |
$2 million |
|
5 - 10 |
$5 million |
|
11 - 20 |
$10 million |
|
Over 20 |
$20 million |
The maximum deductibles:
- apply to
- general liability,
- umbrella/excess liability, and
- professional liability; and
- must be based on the Property'sProperty'sMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). total insurable values of the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). insurance policy as follows:
|
If the insurable value is... |
The maximum deductible amount per occurrence is... |
|---|---|
|
Less than $5 million |
$50,000 |
|
Equal to or greater than $5 million, but less than $50 million |
$100,000 |
|
Equal to or greater than $50 million, but less than $100 million |
$150,000 |
|
Equal to or greater than $100 million |
$275,000 |
Guidance
You may satisfy the insurance coverage requirements:
- with any combination of primary liability insurance and excess/umbrella insurance coverage, provided the aggregate coverage meets the required minimum limits; and
- for excess/umbrella insurance, when the coverage limit meets the requirement for the location with the most stories.
You should ensure that any liability policy does not contain exclusions for normal coverage that are normal and customary in the standard liability form, such as
- assault and battery,
- animal attacks, and
- firearms, etc.
The maximum deductible amount, per occurrence, is the combined deductible for both the
- underlying general or professional liability, and
- excess/umbrella liability.
For example, if the Borrower’sBorrower’sPerson who is the obligor per the Note. total insurable value is $45 million, then the maximum deductible is $100,000 combined for the underlying liability and excess/umbrella liability in any combination (e.g., $75,000 deductible/self-insured retention on the general liability and $25,000 on the excess/umbrella liability).