On top of agreement, your buddy will want to get AROUND 2 Million in liability coverage. Even if he wasn't leasing it, he NEEDS TO DO THIS!!! I did some shopping around for my liability coverage if you want name of place that was great price, great reputation, etc. Not that expensive at all. Like, TOTAL GUESS, I think if no buildings to insure (separate issue of course) - I think Liability was $300-400-ish per year for 2 Mill in coverage? About that or maybe could be cheaper even.