Kroger Midtown Atlanta GA: non-permitted insurance overcharge case study
A public-record retail CAM case study showing $30,900 in insurance overcharges: D&O and umbrella premiums passed through despite lease restricting insurance to property and general liability.
What happened
Kroger's lease at Midtown Square restricts recoverable insurance to property and commercial general liability (Section 11.2). The 2021 reconciliation included $22,500 in D&O liability and $8,400 in umbrella coverage, corporate insurance types that Kroger never agreed to fund. The $30,900 combined overcharge formed the basis of the 2022 Fulton County lawsuit.
Findings from the pipeline
Rule 9: Insurance Overcharge
high confidence
$22,500
Insurance premium 'directors_and_officers' is not among the coverage types the lease permits the landlord to recover.
Lease evidence
Landlord shall maintain property insurance and commercial general liability insurance as Operating Expenses. No other insurance maintained by Landlord shall constitute an Operating Expense recoverable from Tenant. Section 11.2.
Section 11.2, page 19
Statement references
- directors_and_officers
Rule 9: Insurance Overcharge
high confidence
$8,400
Insurance premium 'umbrella' is not among the coverage types the lease permits the landlord to recover.
Lease evidence
Landlord shall maintain property insurance and commercial general liability insurance as Operating Expenses. No other insurance maintained by Landlord shall constitute an Operating Expense recoverable from Tenant. Section 11.2.
Section 11.2, page 19
Statement references
- umbrella
Lease evidence
- Recoverable insurance limited to property insurance and commercial general liability (Section 11.2).
- No other insurance types may be passed through.
Why this matters for your firm
Insurance scope disputes are common in retail leases because landlords maintain complex insurance programs covering their entire real estate portfolios. When insurers consolidate coverage into bundled policies, individual line items like D&O or cyber liability can slip into CAM statements even when individual leases explicitly exclude them.
Correction package excerpt
Request for Cooperative Review of Certain Line Items. The automated review flagged $30,900 in non-permitted insurance charges : D&O ($22,500) and umbrella ($8,400) are not among the coverage types recoverable under Section 11.2.
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Apply for partner accessPublic-record note
This page summarizes public-record documents and CAMAudit output for educational and marketing purposes. It does not imply endorsement by Kroger Co. or any third party. Readers should review the underlying lease, statement, and dispute timeline for their own facts.