What is the All Team franchisee's responsibility regarding insurance policies related to the collateral?

ment.

FRANCHISEE shall at all times faithfully, honestly and diligently perform the obligations hereunder, use its best efforts to promote and enhance the Agency, and shall not engage in any business or other activity that will conflict with the FRANCHISEE's obligations hereunder.

• H. Insurance. FRANCHISEE will purchase and continuously maintain during the term of this Agreement the following described insurance coverages, and will furnish to ATFC evidence of such insurance as ATFC shall reasonably request, together with information concerning claims and losses under such insurance. All policies of insurance required to be provided and maintained by FRANCHISEE by this Agreement must be carried with such responsible insurance companies and be in such form as is reasonably satisfactory to ATFC. ATFC has the right to require FRANCHISEE to increase the types and amounts of insurance coverage as ATFC may, in its sole discretion, reasonably require. In the event ATFC exercises its right to increase insurance coverage requirement hereunder, FRANCHISEE shall have thirty (30) days from the date of receipt of written notice from ATFC to comply with the new insurance coverage requirements as set forth in such notice and provide evidence of such coverage.
• 1. Workers' Compensation Insurance and Employers' Liability Insurance, as required by law or regulation for statutory limits to cover regular employees of the Agency as well as temporary employees with minimum limits of $1,000,000 per occurrence.
• 1. General Liability Insurance with a minimum limit of $1,000,000 per occurrence and $2,000,000 in the general aggregate.
  • 1. Personnel Consultant's Errors and Omission Insurance in the amount of $1,000,000.
• 1. Non-owned automobile insurance with a combined single limit of liability for each accident of not less than $1,000,000.
• 1. Employee Practices Liability insurance with minimum limits of $2,000,000 per claim and in the aggregate.
• 1. Employee Dishonesty/Blanket Crime Insurance covering loss to customer property caused by temporary workers with a minimum limit of $1,000,000 per occurrence.
  • 1. Blanket Fidelity Bond for temporary help services with $10,000 limit of liability.
• 1. Excess or Umbrella Liability insurance with limits no less than $5,000,000 per occurrence over the Commercial General Liability.
• 1. Property Insurance as follows: (a) "All risk" comprehensive protection on replacement form for replacement value; (b) Robbery, money and securities on and off premises for $5,000.00; and (c) Employee blanket dishonesty for $5,000.00.
• 1. Such other insurance as may be required by the applicable state or local law of the Area.
• 1. If FRANCHISEE is going to place licensed medical professionals, FRANCHISEE will need to obtain additional professional liability insurance which will be described in greater detail in the Manual.

FRANCHISEE agrees to comply with any of changes to the insurance requirements, at FRANCHISEE's sole cost and expense. All general liability insurance policies will name ATFC, its affiliates and its successors and assigns, and National Accounts (as applicable) as additional insured and will provide that ATFC must receive thirty (30) days prior written notice of any termination, expiration or cancellation of the insurance policy. Each year FRANCHISEE must provide ATFC with a certificate or other evidence of FRANCHISEE's compliance with the insurance requirements. If FRANCHISEE fails to maintain such insurance, ATFC may procure such insurance on FRANCHISEE's behalf and will be entitled to reimbursement from FRANCHISEE for ATFC's costs to do so, in addition to any other rights and remedies ATFC may have under this Agreement. However, ATFC is not obligated to obtain such insurance on FRANCHISEE's behalf. In any event, FRANCHISEE will be charged a penalty of $500 per month and prohibited from operating the Agency until the required Certificate of Insurance is received by ATFC. Regardless of the amounts set forth above, it will be FRANCHISEE's responsibility to maintain adequate insurance coverage at all times during the term of and after the expiration of this Agreement. FRANCHISEE recognizes that the levels of insurance described

Source: Item 22 — CONTRACTS (FDD pages 33–34)