Our insured plans to lease an entire building for his operation. The lease requires him to provide property insurance on the building, which we can understand. However, the lessor is also requiring the insured to provide business income coverage for the lessor's loss of rents if the insured tenant is out of business for the period of time specified.

We have never heard of this. How can this exposure be insured?

Ohio Subscriber

The situation you describe is more and more common. None of the standard ISO forms provide business income coverage for the benefit of other than the insured.

It may be possible to obtain the coverage from a specialty lines carrier. Barring that, the lessor could obtain the coverage in his or her own name, and require that the premium be paid by the lessee.