CVS pharmacy at Target: public-record insurance pass-through case study
A public-record CAM case study showing $5,952 in flagged insurance pass-through charges in a CVS pharmacy sublease inside Target.
What happened
CVS operates pharmacy departments within Target stores under a store-within-a-store sublease model. The lease allows only pharmacy-specific coverage, but the 2021 operating statement passed through Target's host-store commercial package policy and directors and officers liability insurance anyway. That pushed duplicate and corporate insurance costs into CVS's CAM bill even though the sublease says those categories are not recoverable.
Findings from the pipeline
Rule 9: Insurance Overcharge
high confidence
$4,800
Insurance premium 'property' is not among the coverage types the lease permits the landlord to recover. [scaled to tenant share: 2.5600%]
Lease evidence
Recoverable insurance costs are limited to: pharmacy professional liability insurance, workers' compensation coverage for pharmacy staff, and liability insurance directly arising from pharmacy operations.
8.2
Statement references
- property
Rule 9: Insurance Overcharge
high confidence
$1,152
Insurance premium 'directors_and_officers' is not among the coverage types the lease permits the landlord to recover. [scaled to tenant share: 2.5600%]
Lease evidence
Recoverable insurance costs are limited to: pharmacy professional liability insurance, workers' compensation coverage for pharmacy staff, and liability insurance directly arising from pharmacy operations.
8.2
Statement references
- directors_and_officers
Lease evidence
- Pro-rata share fixed at 2.56%.
- Recoverable insurance is limited to pharmacy liability, professional liability, and workers compensation.
- Host store commercial package policies are not recoverable.
- The lease does not include a CAM cap.
Why this matters
The duplicate insurance issue is common in store-within-a-store and sublease structures. The tenant already carries its own risk-specific insurance, so a broad host-store policy can slip into CAM as a second bill for the same exposure. This is exactly the kind of narrow lease-language mismatch that tenants miss when they review statements by eye.
Dispute letter draft excerpt
Request for Cooperative Review of Certain Line Items. The automated review flagged an apparent discrepancy of $5,952.00 for the 2021 reconciliation year tied to non-permitted insurance charges.
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Public-record note
This page summarizes public-record documents and CAMAudit output for educational and marketing purposes. It does not imply endorsement by CVS, Target, or any third party. Readers should review the underlying lease, statement, and dispute timeline for their own facts.
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