What A.M. Best rating is required for insurance carriers for a 7 Brew store?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
You must maintain insurance coverage for the Store at your own expense in the amounts, and covering the risks, we periodically specify. Your insurance carriers must be licensed to do business in the Store's state and be rated A-, VII or higher by A.M. Best and Company, Inc. (or satisfy our other criteria). We have the right periodically to increase the required coverage amounts and/or require different or additional insurance coverage at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or relevant changes in circumstances. Insurance policies must be written in your name and name us (and our parent companies, subsidiaries, and all other affiliates, and our and their respective officers, owners, directors, agents, representatives, and employees) as additional insureds for claims arising from your products and operations. You must provide updated insurance policies and proof of payment to us at least 10 days before the expiration or termination of such policy or policies.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–32)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, franchisees must maintain insurance coverage for their stores using carriers licensed in the store's state. These carriers must have a minimum rating of A-, VII or higher from A.M. Best and Company, Inc., or satisfy other criteria set by 7 Brew.
7 Brew retains the right to modify the required coverage amounts or mandate different or additional insurance coverage to reflect factors such as inflation, new risks, legal changes, or higher damage awards. Franchisees are obligated to name 7 Brew and its affiliates as additional insureds in their insurance policies for claims arising from their products and operations.
Franchisees must provide updated insurance policies and proof of payment to 7 Brew at least 10 days before the expiration or termination of the existing policies. This ensures continuous coverage and compliance with 7 Brew's insurance requirements. The specific types and minimum amounts of insurance coverage are detailed elsewhere in the FDD, including commercial general liability insurance, property damage insurance, and others.