Insurance requirements for child care facility that wants to lease my building
There is a small child care that only cares for very young kids (0yr - 2yr) and wants to lease a 2000 sq ft stand-along building I have. The lease template I have wants significant insurance to be held by the lessee (see below).

Is this on par for a lessee like this? The building itself is only around around $300k as context.

1     Insurance.    Lessee shall maintain in full force and effect throughout the Term of this Lease the following insurance:

(a)  Commercial General Liability with a limit of not less than $1,000,000 per occurrence and not less than $2,000,000 each in the General Aggregate and Products/Completed Operations Aggregate;

(b) Business Auto Liability covering owned, non-owned and hired vehicles with a limit of not less than $1,000,000 per accident;

(c) Worker’s Compensation insurance with limits equal to or in excess of those required by applicable Louisiana laws or regulations;

(d) Property coverage protecting Lessee against loss of or damage to Lessee’s contents, alterations, additions, improvements, inventory and other business personal property situated in or about the Premises to the full replacement value of the property so insured; and

(e) Business Interruption Insurance with limit of liability representing loss of at least approximately six months of income.

(f) Flood insurance on Lessee’s contents, if desired.

Each such insurance shall be provided at Lessee’s expense and be issued by an insurance company with a minimum Best’s rating of “A:VII.” A 60-day written notice shall be provided to Lessor in the event of cancellation or material change to coverage. Lessor shall be added as an additional insured as its interests may appear on the above-referenced General Liability policy and a certificate of insurance shall be provided to Lessor to verify.

5.2	Waiver Of Subrogation. To the maximum extent permitted by insurance policies which may

be owned by Lessor or Lessee, for the benefit of each other, Lessor and Lessee shall and do hereby waive any and all rights of subrogation which might otherwise exist.
[{"id": "hoewiwn", "text": "I always specify \"additional interest\" rather than \"additional insured\" because you can't sue a co-insured. For that reason, I'd also explicitly specify that Lessor and Lessee are not implicit co-insureds under these policies. Additional interest should cause the insurance company to cover the notification requirements without requiring any action on the part of your tenant.", "replies": [], "depth": 1}, {"id": "hoficrv", "text": "Everything except the flood insurance can probably be obtained on a small business BOP plus auto policy. The flood might be situational, maybe not required?\n\nMaybe add a professional liability requirement as well? Whenever you have an environment where adults are interacting with young kids, I don\u2019t know how you might get wrapped up in some suit but for example it\u2019s common for a hotel that brings in outside masseuse services to carry a professional services endorsement\u2026 lots of room for \u201che said she said\u201d incidents and you\u2019re the one providing the space facilitating that interaction. Probably a much greater risk in LA vs say Dallas.\n\nThe professional liability will be the most expensive so maybe you don\u2019t require it but that\u2019s what I would consider adding. It can sometimes be added as an endorsement to a BOP but otherwise is purchased on a standalone policy.\n\nFor additional insured language, in the contract you specify to be named as additional insured on their insurance policies and a waiver of subrogation will apply. That just means if you get roped into a lawsuit caused by them, their policy will defend you as additionally insured, and the waiver of subrogation prevents their insurance company from going after you later. \u201cAdditional Insured\u201d is not the same as being also named insured on their policy. The certificate they provide you will probably say \u201cwhere required by written contract, [your business] is named additional insured. Waiver of subrogation applies.\u201d", "replies": [], "depth": 1}, {"id": "hofx2ub", "text": "Can one of their guests fall on your property?\n\nCould it burn down in the middle of the night because the tenant left a bottle warmer on, that had a short?\n\nCould one of the parents come pick up their kid drunk and smash in to another guest or...your building?\n\nAll of those *start* at $300,000.00 and could easily end up above $3,000,000.00.", "replies": [], "depth": 1}]