Can't get insurance for build out!

[southJerZ]

So, I'm opening a Family Entertainment Center(FEC). I have all my ducks in a row. I've hired an excellent attorney and I'm using a well respected Architect/Engineer/Designer firm. I found a perfect 21k sf building in a great location. So, I worked out a lease with the owner and he is requiring that we have general liability insurance during the build out. The build out is estimated to take 2 months, so I'll say more likely 3 months. We applied for insurance which went into underwriting for over a month. We answered question after question. Came back declined. The company said that they are more than happy to insure us once we are actually open, but not during build out. The agent explained that the underwriters are not willing to cover our company while a completely unrelated company demos/constructs the building. The agent claimed that liability falls on the construction company. I've also tried other FEC insurers and I get the same response, call us when you open. I tried all the bigger name companies (Hartford, Hiscox, Liberty Mutual...) and none will cover FECs. This leaves us at a stalemate with the owner. We can't sign the lease until we get insured, but we can't get insured until construction is done. The owner does not seem willing to allow liability to fall solely on the construction company for the duration of the build. Is the owner simply being stubborn? Are the insurance companies to blame? Is this a unique situation?

[turboguy]

Can you get the construction company to name you as an additional insured? That should cost them nothing, could be done in minutes and should satisfy the owner.

[Harold Mansfield]

I thought construction companies carried their own insurance. Why doesn't this one?

[nealrm]

If the owner doesn't accept you being on the construction company insurance, you will need some leverage. Find another building to rent that is suitable. Tell the owner that he either accepts the insurance or you walk. If he doesn't then walk.