A responsible party has been leased an entire building by Max. The lease states it is...

A responsible party has been leased an entire building by Max. The lease states it is mandatory for the lessee to have liability insurance. Max

a. doesn't need to carry liability insurance as he is protected sufficiently by the lessee's policy

b. needs to obtain liability insurance, as all parties are named in all suits and expensive defense costs may be incurred or the lessee may not have sufficient liability limits

Which of the following is true?

Solutions

Expert Solution

Option b holds true.

In this case Max needs to obtain liability insurance primarily because the insurance taken by the lessee may not be sufficient. Moreover the defense costs may be highly expensive and this will require coverage.

jeff jeffy answered 2 years ago

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