Does Americas Best Value Inn require boiler & machinery insurance?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
tion and booking fees will be charged for cancelled reservations unless they are cancelled through the same channel in which they were made.
- 2 If you fail to report the number of room nights actually consumed by a group within 15 days of the group's departure, this fee will be charged based on the contracted for room nights.
Schedule 8.(i)
Insurance Requirements
- (a) Types and Amounts of Coverage. Throughout the Term, you will maintain such types of insurance in such amounts as we may require. Such insurance is in addition to any other insurance that may be required by applicable law, your landlord, your mortgagee, or otherwise. At a minimum, such policies shall include the following (liability limits for primary and excess/umbrella policies may be in any combination as long as the total minimum limit requirements are met):
- (i) Commercial general liability ("CGL") insurance for any claims or losses arising or resulting from the operations/premises of the Premises with limits of not less than $1,000,000 per occurrence and a general aggregate limit not less than $3,000,000; limits shall apply on a per location aggregate basis if Premises is insured under a blanket policy;
- (ii) Property/all risk and contents insurance (or builder's risk insurance during any period of construction) on all building(s) and contents against loss or damage by fire, lightning and all other risks associated and covered by the "all risks" policy form, all in an amount not less than 90% of the replacement cost;
- (iii) Boiler & machinery insurance against loss or damage from explosion of boilers or pressure vessels to the extent applicable;
- (iv) Business interruption insurance covering at least 12 months loss of profits and necessary continuing expenses for interruptions caused by a covered occurrence;
- (v) Workers' compensation insurance in statutory amounts for all your employees and employer's liability insurance in amounts not less than $1,000,000 per accident/disease;
- (vi) Liquor liability (applicable only when or if you distribute, sell, serve, or furnish alcoholic beverages) with limits of not less tha
Source: Item 23 — RECEIPTS (FDD pages 71–223)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn Franchise Disclosure Document, franchisees must maintain various types of insurance coverage throughout the term of their agreement. The specific types and amounts of coverage are determined by Americas Best Value Inn. These insurance requirements are in addition to any other insurance that may be required by law, landlords, or mortgagees.
At a minimum, the required insurance policies must include commercial general liability insurance, property/all risk and contents insurance, boiler & machinery insurance (to the extent applicable), business interruption insurance, workers' compensation insurance, liquor liability (if applicable), automobile liability insurance, and garage-keeper's liability (if applicable). The boiler and machinery insurance is required against loss or damage from explosion of boilers or pressure vessels to the extent applicable.
Americas Best Value Inn also has the right to modify the required insurance coverage amounts and types periodically, including requiring additional excess liability insurance. Franchisees must provide certificates of insurance to Americas Best Value Inn within 10 days of the effective date of the franchise agreement and before opening their hotel as an Americas Best Value Inn. These certificates must show compliance with the insurance requirements and include a statement that the policies will not be canceled without at least 30 days' prior written notice to Americas Best Value Inn.