When would the Tenants Legal Liability (TLL) limit apply, as opposed to Commercial General Liability (CGL) limit?
– This is a complex question, which is why RAC chose to pay a substantial increase in premium to ensure that the protection limit would be at least $3 Million. One of the determining factors which distinguishes which coverage applies is whether or not an individual or club entered into a lease, rental or occupancy agreement with a landlord or property owner which provided that the member or club would assume tenant liability – i.e. liability for losses incurred by the landlord/owner while the property was occupied, leased or rented to the member or club. There are likely other instances where, due to the nature of the activity and the location where it occurs, that even in the absence of a written agreement to assume liability for loss or damages, the TLL provisions may apply. In summary, TLL is the coverage that relates primarily to occurrences indoors in rented or borrowed premises. It applies particularly when the club has signed an agreement with the landlord (shopping mall, arena,
