Can insurance for an Americas Best Value Inn be effected under policies of blanket insurance?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
All insurance may be effected under policies of blanket insurance which cover your other properties and affiliates so long as such blanket insurance satisfies our requirements, as they periodically are modified. Our requirements for minimum insurance coverage are not representations or warranties of any kind that such coverage is sufficient for your Hotel's operations. Such requirements represent only the
minimum coverage that we deem acceptable to protect our interests. It is your sole responsibility to obtain insurance coverage for your Hotel that you deem appropriate, based on your own independent investigation. We are not responsible if you sustain losses that exceed your insurance coverage under any circumstances. Additionally, no insurance coverage that you or any other party maintains will be deemed a substitute for your indemnification obligations to us or affiliates under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 71–223)
What This Means (2025 FDD)
According to Americas Best Value Inn's 2025 Franchise Disclosure Document, insurance coverage may be effected under blanket insurance policies, provided these policies meet specific requirements set by Americas Best Value Inn, which may be modified periodically. This means a franchisee can potentially cover their Americas Best Value Inn location under a broader insurance policy that includes other properties or affiliates. However, the blanket insurance must satisfy all of Americas Best Value Inn's stipulations to be considered adequate.
The insurance policies must be written by an insurance company with a Best rating of "A" or better. Additionally, Americas Best Value Inn, its affiliates, and their respective officers, directors, and employees must be named as additional insureds and loss payees for all liability coverage policies. The franchisee's coverage must be primary, meaning Americas Best Value Inn's insurance will be excess and non-contributory. The coverage afforded to Americas Best Value Inn and its affiliates must be coextensive with the coverage provided to the franchisee.
Americas Best Value Inn has the right to change the required coverage amounts and types of insurance, including potentially requiring excess liability insurance. The minimum insurance coverage requirements set by Americas Best Value Inn are not a guarantee that the coverage is sufficient for the hotel's operations; it is the franchisee's responsibility to obtain adequate insurance based on their own assessment. The franchisee is solely responsible for ensuring they have sufficient coverage for their hotel's operations, and Americas Best Value Inn is not liable for losses exceeding the insurance coverage.