9.7 Legal Liability Coverage Form

The Legal Liability Coverage Form provides coverage for the insured’s legal liability for loss of or damage to property owned by others. Coverage applies when real property or personal property belonging to another person or organization is in the insured’s care, custody, or control and is damaged by a covered cause of loss. This form may also cover the loss of use of the damaged property. In addition, the insurer will provide a legal defense if a covered claim is made against the insured. This coverage is important for businesses that are legally responsible for property they do not own but temporarily control, use, store, repair, or service.

The Legal Liability Coverage Form is most commonly used for a tenant who leases a commercial building or space. This form may be needed when the lease agreement makes the tenant legally responsible for damage to the building or leased premises. In that situation, the tenant may need coverage for property they do not own but are required to protect under the terms of the lease.