Can Americas Best Value Inn require different or additional kinds of insurance?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
We periodically may change the amounts of coverage required under the insurance policies and require different or additional kinds of insurance, including excess liability insurance. 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 the 2025 Americas Best Value Inn Franchise Disclosure Document, Americas Best Value Inn has the right to modify insurance requirements, potentially requiring different or additional kinds of insurance, including excess liability insurance. The franchisee is responsible for securing adequate insurance coverage for their hotel operations based on their independent assessment. The minimum insurance coverage required by Americas Best Value Inn does not guarantee sufficient protection for the hotel's operations.
Americas Best Value Inn also specifies minimum insurance coverage that franchisees must maintain throughout the term of the agreement. These include commercial general liability insurance with limits of not less than $1,000,000 per occurrence and a general aggregate limit not less than $3,000,000; property/all risk and contents insurance for at least 90% of the replacement cost; boiler & machinery insurance; business interruption insurance covering at least 12 months of lost profits; workers' compensation insurance in statutory amounts and employer's liability insurance in amounts not less than $1,000,000 per accident/disease; liquor liability insurance with limits of not less than $1,000,000 per occurrence (if applicable); automobile liability insurance for combined single limits of bodily injury and property damage of not less than $1,000,000 per occurrence and a general aggregate limit not less than $3,000,000; and garage-keeper's liability (if applicable).
All insurance policies must be written by an insurance company with a Best rating of "A" or better. Americas Best Value Inn, its affiliates, and their officers, directors, and employees must be named as additional insureds and loss payees. The franchisee's insurance coverage must be primary, and any insurance carried by Americas Best Value Inn 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. Franchisees must provide certificates of insurance within 10 days of the Effective Date and renewal certificates not less than 10 days prior to each insurance policy's renewal date.